Prevailing Wage Gets Hearing in the Senate

Next week the Senate has agreed to begin hearings on legislation to repeal Michigan’s prevailing wage law.

Although the Senate is moving forward with hearings, Governor Snyder has been outspoken in his opposition to repealing the law. Michigan’s current law covers construction workers employed on state financed or sponsored construction projects. The prevailing wage law gives the Department of Licensing and Regulatory Affairs authority to set wage and fringe benefit rates to be paid to construction workers on those projects.

Senate Bills 1, 2, and 3 are currently in the Senate committee on Michigan Competitiveness chaired by Sen. Mike Shirkey (R-Clarklake), who in the past has indicated his support for this type of legislation. The other members of the Committee, minus the one Democrat, are either sponsors or co-sponsors to this package so there is little committee anticipated opposition to this bill as hearings get underway next week.

Democrats in the Senate have already voiced their opposition to the bills stating that repealing this law will lower wages of Michigan workers and hurt Michigan families. The other side of the argument, however, disagrees and believes that prevailing wage laws cost taxpayers hundreds of millions of dollars each year.

Whatever the final outcome, prevailing wage laws have been a target in recent years across the country and have resulted in a national shift in how wages are paid for certain public projects.

posted by PAA Online , Friday, May 8, 2015 11:24 AM
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