At a Glance
Quick Answer
Michigan has an active prevailing wage law (Prevailing Wages on State Projects Act (Act 10 of 2023)). Administered by Michigan Department of Labor and Economic Opportunity (LEO). Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
Michigan's prevailing wage law was originally enacted in 1965 (Act 166), repealed via ballot proposal in 2018, and restored through Act 10 of 2023, which took effect February 13, 2024. The law requires prevailing wages on all state-funded construction projects including buildings, roads, and schools. A 2024 amendment (Public Act 110 of 2024) expanded coverage to qualifying energy facility projects.
Context
Prevailing Wage & Bidding in Michigan
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 Originally enacted in 1965, repealed by ballot proposal in 2018, and restored through Act 10 of 2023, the law took effect February 13, 2024 and is administered by the Department of Labor and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.
Details
Coverage Details
State Law Details
- Law
- Prevailing Wages on State Projects Act (Act 10 of 2023)
- Agency
- Michigan Department of Labor and Economic Opportunity (LEO)
- Thresholds
- All state-funded construction projects (no minimum threshold specified)
- Certified Payroll
- Required
Federal Davis-Bacon Coverage
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in Michigan. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
Originally enacted 1965 (Act 166), repealed 2018, restored 2024 via Act 10 of 2023
Governor Whitmer signed the restoration bill on March 24, 2023; effective February 13, 2024
Covers all state-funded construction: buildings, roads, schools, infrastructure
2024 amendment expanded coverage to solar, wind, and energy storage projects (2+ MW)
One of the only states to successfully restore prevailing wage after repeal
Enforcement
Penalties
Contractors who violate the Act may face payment of back wages, debarment from state contracts, and civil penalties. Workers may file complaints with LEO for underpayment.
Updates
Recent Changes
Act 10 of 2023 restored prevailing wage effective February 13, 2024. Public Act 110 of 2024 (SB 571) expanded coverage to qualifying energy facility projects including solar, wind, and energy storage facilities with 2+ megawatt capacity.
Resources
Related Tools & Templates
Turn wage rules into bid-ready alerts
Use ConstructionBids.ai to track matching public projects, save bid searches, and move wage-sensitive scopes into your estimating workflow.
FAQ
Questions Contractors Ask
Does Michigan have a prevailing wage law?
Yes. Michigan has an active state prevailing wage law: Prevailing Wages on State Projects Act (Act 10 of 2023). Michigan's prevailing wage law was originally enacted in 1965 (Act 166), repealed via ballot proposal in 2018, and restored through Act 10 of 2023, which took effect February 13, 2024. The law requires prevailing wages on all state-funded construction projects including buildings, roads, and schools. A 2024 amendment (Public Act 110 of 2024) expanded coverage to qualifying energy facility projects.
Does Davis-Bacon apply in Michigan?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in Michigan, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in Michigan?
Yes. Michigan requires certified payroll on state prevailing wage projects. Additionally, certified payroll is always required on federal Davis-Bacon projects using form WH-347.
What are the penalties for prevailing wage violations in Michigan?
Contractors who violate the Act may face payment of back wages, debarment from state contracts, and civil penalties. Workers may file complaints with LEO for underpayment.
Is prevailing wage currently required in Michigan?
Yes. After being repealed in 2018, Michigan's prevailing wage law was restored by Act 10 of 2023 and took effect February 13, 2024. It now applies to state-funded construction including buildings, roads, schools, and infrastructure, administered by the Department of Labor and Economic Opportunity.
Does Michigan prevailing wage apply to renewable energy projects?
Yes. A 2024 amendment, Public Act 110 of 2024, expanded coverage to qualifying energy-facility projects such as solar, wind, and energy storage. Contractors bidding these projects in Michigan's public pipeline must price labor to prevailing rates and meet the law's certified payroll obligations.
What happens if a Michigan contractor underpays on state work?
Violators can face payment of back wages, debarment from state contracts, and civil penalties. Workers may file underpayment complaints directly with LEO. Contractors who last bid state work before the 2018 repeal should not rely on outdated assumptions, since wage and reporting duties have returned.