Michigan Prevailing Wage

Michigan's prevailing wage requirement is back, and bidders should treat it as fully in force. Originally enacted in 1965, repealed by ballot proposal in 2018, and restored through Act 10 of 2023, the law took effect February 13, 2024 and is administered by the Department of Labor and Economic Opportunity (LEO). It requires prevailing wages on state-funded construction across the board — buildings, roads, schools, and infrastructure. A 2024 amendment (Public Act 110 of 2024) extended coverage to qualifying energy-facility projects such as solar, wind, and storage, so renewable-energy contractors entering Michigan's public pipeline need to factor wage compliance into their pricing.

For estimators, the restoration means rebuilding the labor line for state-funded work. Price each trade to the applicable prevailing rate rather than your standard pay scale, classify workers accurately, and budget for certified payroll reporting — a recurring administrative cost that many Michigan contractors had stopped carrying during the repeal years. If your team last bid state work before 2018, do not rely on old assumptions; the wage and reporting obligations have returned and apply to current solicitations.

Confirm the funding source for every project, because state funding is what triggers coverage. On federally funded Michigan work, Davis-Bacon may apply alongside or instead of the state requirement, and you must follow the more stringent standard. Violations can bring back-wage liability, debarment from state contracts, and civil penalties, and workers can file underpayment complaints directly with LEO. The practical takeaway: verify funding, pull the correct rate schedule at bid time, price prevailing wages and certified-payroll overhead as fixed costs, and make sure your subcontractors are equally prepared so compliance gaps do not surface mid-project.