Without prevailing wage in Michigan, won’t most construction workers see a decrease in pay?
No, the vast majority of construction work isn’t even subject to prevailing wage. Only some educational, road and state building projects are subject to prevailing wage. All private sector work, all residential construction and most commercial work is not subject to prevailing wage. This constitutes the vast majority of overall construction activity. Prevailing wage repeal only means that taxpayer-funded construction would now have to be performed as it is everywhere else.
What’s the average construction wage in Michigan without prevailing wage?
The average Michigan construction worker makes more than $47,000 annually without prevailing wage. This is higher than the annual salary of the average worker in Michigan. In many construction crafts, the salary is much higher.
Does prevailing wage mean that projects are built more safely?
No. State law requires that all construction work be built in accordance to strict health and safety requirements. The Michigan Occupational Safety Health Administration (MIOSHA), under law, enforces identical health and safety standards on all construction work, regardless of whether or not prevailing wage is required.
Do other industries have prevailing wage?
Michigan’s prevailing wage act only addresses the construction industry. No other industry is subjected to this costly regulatory burden.
Does prevailing wage mean that projects are subject to different quality standards?
No. State law requires that all construction work be built in accordance with stringent quality requirements overseen by the Michigan Bureau of Codes, regardless of whether or not prevailing wage is required.
Is prevailing wage difficult to comply with?
Yes, prevailing wage is a red tape nightmare. There are tens of thousands of wage classifications that differ from locality to locality and from trade to trade. These are all subject to change throughout the year and increase the cost of doing business in Michigan.
Do most states have prevailing wage requirements like Michigan?
Forty-four other states either have no prevailing wage requirement at all, or determine wages using more accurate and reliable methodology.
Would prevailing wage repeal result in workers from other states taking Michigan jobs?
No. This is not the case in the states without prevailing wage requirements, was not the case in Michigan when prevailing wage was suspending in the 1990s and is not the case for the majority of construction in Michigan that is already not subject to prevailing wage.