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SB 54

Labor: hours and wages; certain state projects paid for by bond or bond proposals, exempt from prevailing wage act. Amends sec. 9 of 2023 PA 10 (MCL 408.1109).

2025-2026 Regular Session Introduced by John Cherry

SB 54 exempts state construction projects funded by bonds from Michigan's prevailing wage requirements, allowing lower labor costs but reducing worker pay on publicly-financed jobs.

referred to Committee on Government Operations
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Bill Summary · SB 54

Legislative bill overview

SB 54 exempts certain state construction projects funded by bond measures or bond proposals from Michigan's prevailing wage requirements. The bill modifies an existing 2023 law and allows these projects to pay workers less than the prevailing wage standards that typically apply to public works projects.

Why is this important

Prevailing wage laws significantly increase labor costs on public construction projects—typically requiring wages 20-40% above market rates. This exemption could reduce project costs for bond-funded initiatives, potentially allowing more projects to proceed with available funds, but it directly affects worker compensation on publicly-funded construction work.

Potential points of contention

  • Worker compensation impact: Exempted projects will pay workers below prevailing wage standards, reducing earnings for construction workers on these jobs
  • Labor union opposition: Construction unions typically oppose prevailing wage exemptions as they undercut wage standards and union membership incentives
  • Cost savings vs. quality concerns: While exemptions reduce costs, critics argue prevailing wages ensure experienced, skilled workers and reduce worker turnover on complex projects
  • Selective application: The exemption applies only to bond-funded projects, creating a two-tier system where some public works have wage protections and others don't

Compiled from official sources — confirm details with the bill’s official record.

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