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SB 1173

Public finance; specifying certain duty of Director of Office of Management and Enterprise Services. Emergency.

2025 Regular Session Introduced by Trey Caldwell

SB 1173 narrows state wage preemption, giving locals limited power to require higher wages or regulate hours on projects funded, contracted, or bonded by local bodies.

Second Reading referred to Joint Committee on Appropriations and Budget
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Bill Summary · SB 1173

SB 1173 — Summary

Status: Introduced (2/7/2025); referred to Committee on Government Operations
Subject: Labor — limits on local governments’ ability to regulate wages, hours, benefits; modification of 2015 PA 105 (Local Government Labor Regulatory Limitation Act)

Main purpose

SB 1173 amends the Local Government Labor Regulatory Limitation Act (2015 PA 105) to narrow some state preemptions on local labor regulation. The bill creates targeted exceptions that would allow local governmental bodies, in specified circumstances, to adopt ordinances, policies, or resolutions that require higher wages or that regulate hours/scheduling for workers on certain projects. It also repeals several statutory prohibitions that previously limited local authority over prevailing wage, apprenticeship, fringe benefits, strikes, and dispute remedies.

Key provisions

  • Amends sections of 2015 PA 105 (see MCL 123.1385 et seq.):
    • Modifies Sec. 5 (MCL 123.1385) so the general ban on local laws requiring wages above the State minimum does not apply to local ordinances adopted on or after the bill’s effective date when those ordinances:
    • Require payment of a higher wage as a prevailing wage or under a project labor agreement; or
    • Require a higher wage when an employer (or contractor/subcontractor) (i) receives funding or an incentive from the local governmental body (or another local body within its jurisdiction), (ii) is a party to a contract with the local governmental body (or another local body within its jurisdiction), or (iii) performs work on a project funded in whole or part by bonds issued by the local governmental body (or another local body within its jurisdiction).
    • Modifies Sec. 9 (MCL 123.1389) to permit local ordinances that limit hours and scheduling for employees who work on projects covered by project labor agreements (the Act continues to prohibit general local regulation of employer-required hours/scheduling, except as noted).
    • Clarifies Sec. 15 (MCL 123.1395) language regarding voluntary agreements tied to services, grants, tax abatements, or tax credits.
  • Repeals sections 6, 7, 10, 11, and 12 of 2015 PA 105 (MCL 123.1386, 123.1387, 123.1390, 123.1391, 123.1392). Those provisions previously:
    • Prohibited local prevailing wage requirements;
    • Restricted local regulation of work stoppages/strikes;
    • Barred local educational apprenticeship requirements;
    • Prohibited local mandates on employer fringe benefits; and
    • Removed or limited local remedies for wage, hour, or benefit disputes.

Who is affected

  • Local governmental bodies: gain limited new authority to require prevailing wages or higher wages in particular contract/funding contexts and to limit hours/scheduling for projects with project labor agreements.
  • Employers, contractors, subcontractors: could be subject to higher local wage requirements or scheduling rules when doing work tied to local funding, contracts, or bonded projects.
  • Workers and labor organizations: may see local-level wage/scheduling protections restored in specific circumstances.
  • State government: statutory change to the preemption framework; no direct change to state minimum-wage law.

Fiscal and policy implications

  • Nonpartisan analysis (committee report) indicates no direct state fiscal impact. Local governments could experience higher costs where they adopt higher wage requirements (e.g., for contractors on bonded projects or recipients of local incentives).
  • Policy implications include partial rollback of a statewide preemption enacted in 2015, restoring limited local discretion over wages, scheduling, and certain labor standards tied to local contracting or funding.

Procedural / timeline

  • Bill introduced 2/7/2025 and referred to the Committee on Government Operations (per bill information provided). Further action will depend on committee consideration, amendments, and floor votes. The bill cites amendments and repeals to specified MCL sections (123.1385, 123.1389, 123.1395; repealing 123.1386, 123.1387, 123.1390, 123.1391, 123.1392).

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

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