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Judge Rules in Favor of the State in Prevailing Wage Case

LANSING – A Michigan court sided with the State in favor its prevailing wage policy, Attorney General Dana Nessel announced today. 

Judge Douglas Shapiro of the Michigan Court of Claims agreed with the Department of Attorney General that the Department of Technology, Management and Budget (DTMB) did not violate the law when it implemented its prevailing wage policy. 

In July, the Associated Builders and Contractors of Michigan (ABC) filed a lawsuit against the State of Michigan with a motion for preliminary injunction asking the Court to enjoin DTMB from requiring prevailing wages for state contracts in excess of $50,000.  ABC claimed the State cannot require the wage rate of its contractors because of the repeal of Michigan’s prevailing wage law in 2018.  

The Court denied ABC’s motion for preliminary injunction and granted DTMB’s motion for summary disposition. The Court agreed that DTMB did not violate separation of powers when it set the prevailing wage policy. The Court also agreed that DTMB was not required to follow the formal rulemaking process of the Administrative Procedures Act of 1969 (APA) when implementing the prevailing wage policy because the policy fits within an exception to the APA’s rulemaking requirements.  

“Michigan workers deserve to be paid a competitive wage,” said Nessel. “This ruling from the Court affirms the authority of the State to set best business practices and require fair wages be paid by those who do business with Michigan.” 

ABC’s claim of appeal is due with the Michigan Court of Appeals by October 31. 

A copy of the order from the Court of Claims is available here.

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