Gov. Whitmer to Reinstate Prevailing Wage for State Construction Projects

Posted by National Alliance for Fair Contracting on

FOR IMMEDIATE RELEASE
October 7, 2021
Contact: Press@Michigan.gov

Gov. Whitmer to Reinstate Prevailing Wage for State Construction Projects

State contractors and subcontractors required to pay prevailing wage, uplifting working people and ensuring Michigan has high-quality infrastructure

LANSING, Mich. - Today, Governor Gretchen Whitmer announced that the State of Michigan will require state contractors and subcontractors to pay prevailing wage for construction projects. The move reinstates the prevailing wage requirement, which was repealed in June 2018, and ensures that any construction worker working on a state construction project receives a fair wage. The governor is proud to lead by example at the state-level and deliver real change for working people in Michigan. 

“By reinstating prevailing wage, we are ensuring that working people get treated with dignity and respect, which starts with a fair wage,” said Governor Whitmer. “As governor, I am proud to stand shoulder to shoulder with working people and unions who built the middle class. By reinstating prevailing wage, we are ensuring working people can earn a decent standard of living, saving taxpayers money and time on crucial infrastructure projects, and offering Michigan a highly-trained workforce to rely on as we build up our roads and bridges, replace lead pipes, install high-speed internet, and more.” 

“We applaud Governor Whitmer’s decision to restore prevailing wage requirements on state projects.” said Tom Lutz, Executive Secretary-Treasurer of the Michigan Regional Council of Carpenters and Millwrights. “This decision protects Michigan’s investments in infrastructure because when prevailing wages are the expectation, contractors have to compete on a level playing field based on quality of their skilled work, not on the exploitation of their workers.” 

“The actions that have been taken today, help to restore confidence by workers and employers alike,” said Steve Claywell, President of the Michigan Building and Construction Trades Council. “The restoring of prevailing wage provides a fair and equal bidding process allowing for highly trained men and women to be paid a good wage. We appreciate the courage of this Governor and stand ready to build Michigan with her.” 

History of Prevailing Wage

Michigan’s prevailing wage was repealed by the Michigan legislature in June 2018. A total of 24 states have repealed their prevailing wage laws. Michigan’s repeal eliminated the state’s prevailing wage requirement, but left the door open for DTMB to require prevailing wage under its authority to develop the terms of state contracts. Governor Whitmer is proud to make that call and reinstate prevailing wage.

Today’s action rewards hard work and ensures working people can earn a decent standard of living, take care of their families, and have a secure retirement. By reinstating prevailing wage, Michigan can continue making progress on critical infrastructure, including roads, bridges, water infrastructure, high-speed internet, and more.

Budget

Last week, the governor signed the Fiscal Year 2022 budget bill that delivers on the kitchen-table fundamental issues that matter most to working families. The budget puts 167,000 Michiganders on a tuition-free path to higher-education or skills training through the Michigan Reconnect and Futures for Frontliners programs, expands low or no-cost childcare to 105,000 kids, repairs or replaces 100 bridges while creating 2,500 jobs, and more. …

(See Press Release)

Gov. Newsom Signs Assemblywoman Gonzalez’ Wage Theft Criminalization Bill

Posted by National Alliance for Fair Contracting on

By City News Service
September 28, 2021

The new law specifies that the intentional theft of wages or tips by employers is punishable as grand theft

A bill that could jail employers for intentionally committing wage theft was signed into law Monday by Gov. Gavin Newsom.

Assembly Bill 1003, written by Assemblywoman Lorena Gonzalez, D-San Diego, specifies that the intentional theft of wages or tips by employers is punishable as grand theft.

“I’ve never understood why we don’t hold employers who steal from their workers responsible for their crimes, the same way we treat any other serious theft,” Gonzalez said. “I’m hopeful this bill will finally change that and make bad actors think twice before treating wage theft like a simple business decision.

“This law sends a clear message: if you intentionally steal workers’ hard-earned wages, you can actually go to prison,” she said.

In California, minimum wage violations cost workers close to $2 billion annually. AB 1003 makes the intentional theft of wages, tips, benefits or compensation — over $950 for one employee and over $2,350 for two or more employees in any 12 consecutive month period — punishable as grand theft. Prosecutors would have the authority to decide whether to charge an employer with a misdemeanor or felony.

According to a report released in May by the Economic Policy Institute, laws that made the crime of wage theft a felony increased the likelihood that district attorneys would pursue more cases and provided prosecutors a more effective means to go after egregious employer crimes.

(Read More)