Prevailing Wage

Contact: Wage and Hour Program 517-284-7800

Michigan's Prevailing Wage law covers construction workers employed on state financed or sponsored construction projects. Under this act the Wage and Hour Division establishes wage and fringe benefit rates to be paid construction workers on state projects.

The Michigan Department of Licensing and Regulatory Affairs determines prevailing rates pursuant to the Prevailing Wage Law, Act 166, P.A. of 1965. The purpose of establishing prevailing rates is to provide rates of pay for workers on construction projects for which the state or a school district is the contracting agent and which is financed or financially supported by the state.

By law, prevailing rates are compiled from the rates contained in collectively bargained agreements which cover the locations of the state projects. The prevailing rates provide an hourly rate which includes wage and fringe benefit totals for designated construction mechanic classifications. The overtime rates also include wage and fringe benefit totals. Please pay special attention to the overtime and premium pay requirements.

The department establishes the prevailing rate for each classification of construction mechanics requested by a contracting agent prior to contracts being let out for bid on a state project. If a contract is not awarded or construction does not start within 90 days of the date of the issuance of rates, a redetermination of rates must be requested by the contracting agent.

The Prevailing Wage Law requires that every contractor and subcontractor post a copy of the prevailing rates prescribed in the contract at the construction site.

An accurate record showing the name, occupation, and the wages and benefits paid to each construction mechanic must be kept by the employer, and made available to the Department or the Contracting Agent for inspection, upon request.

A worker who has not been paid the prevailing rate on a state project may file a complaint with the Wage & Hour Division. The department will investigate and attempt to resolve the complaint informally. If voluntary resolution is not successful, the complainant will be referred to the prosecuting attorney for enforcement action.

For questions or to request rates for additional classifications, please contact: Michigan Department of Licensing and Regulatory Affairs , Wage and Hour Division, P.O. Box 30476, Lansing, Michigan 48909-7976, Phone: 517-284-7800.

Occasionally the Wage and Hour Division receives inquiries regarding the classification of workers on a project. The division does not classify workers or resolve classification disputes. The contracting agent for a project has the right and responsibility for the quality of work and for determining the work classifications needed on a project.