House Bill Proposes to Repeal Michigan’s Prevailing Wage Law

Posted by: Hilger Hammond On: 9th June 2011 | no responses.

By Mark Rysberg

Earlier this year the Michigan House of Representatives introduced HB 4224, which if passed into law would repeal the law that requires, among other things, that public construction projects be awarded to contractors paying prevailing wage rates and providing fringe benefits.  Representative Amanda Price, as the primary sponsor for the HB 4224, advocates that Michigan’s prevailing wage law needs to be repealed because it “increases construction costs by 10 percent to 15 percent, costs that are passed on to taxpayers.”  (Here).   Union proponents such as the Michigan Building and Construction Trade Council oppose the bill and argue that “[w]ithout a prevailing wage on which to base their bidding, contractors will be tempted to under-bid others by employing a lower-cost, out-of-state workforce, and oftentimes, an undocumented workforce that doesn’t pay taxes.”  (Here).  HB 4224 has been referred to the House Committee on Oversight, Reform, and Ethics.

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