The State of Michigan has reinstated the payment of prevailing wage to all mechanics and laborers employed directly on the site of the work on contracts for construction-based work over $50,000, that are issued by the Department of Technology, Management & Budget (DTMB) after March 1, 2022. The payment of proper prevailing wage rates is considered DTMB contract requirements.

Construction project financed by state funds, in whole or in part, that are subject to prevailing wage include road work, the replacement of lead water pipes, the expansion of high-speed internet service, and the installation of electric vehicle charging stations.

Compliance Tips

  • Failure to pay prevailing wage would be a breach of contract and may result in contract termination.
  • The establishment of rates can be based on the smallest locality possible, so in some cases may be established for specific townships or cities.