PREVAILING WAGE

Michigan prevailing wage law

Whether Michigan requires prevailing wages on public construction, from what contract size, who sets the rates, and what contractors file. Each fact links its official source and the date it was checked.

Facts from the official sources listed at the end of this page; the oldest was read from an archived copy dated December 24, 2025. For contractors and employers. General information, not legal advice: confirm the rules with the awarding body or the agency before you bid. Reviewed every year.

Prevailing wage in Michigan at a glance

State prevailing wage law: In forceMCL 408.1101 to 408.1126 (2023 Public Act 10)
Contract threshold: No dollar threshold
Certified payroll: After each pay period
Federal work: Davis-Bacon, over $2,000

Michigan prevailing wage rules

The law: Michigan requires prevailing wages on state projects under 2023 Public Act 10, effective February 13, 2024; its earlier law was repealed in 2018.Source: MCL 408.1102, Contracts for state projects (2023 PA 10) (opens in a new tab), read from an archived copy dated January 18, 2026 (opens in a new tab)
Who it covers: State projects: new construction, alteration, repair, installation, painting, decorating, completion, demolition, conditioning, reconditioning or improvement of public buildings, schools, works, bridges, highways or roads, authorized by a public contracting agent (a State officer, board or commission, a school board, or a State-supported institution) and sponsored or financed in whole or in part by the State; plus energy facility projects (wind, solar or storage of 2 megawatts or more), private ones included (MCL 408.1101).Source: MCL 408.1101, Definitions (2023 PA 10) (opens in a new tab), read from an archived copy dated January 27, 2026 (opens in a new tab)
Threshold: No dollar threshold. The act does not apply to contracts entered into or bids made before February 13, 2024, or to a state project paid for in part from a school millage authorized before then (MCL 408.1109); contracts that already require Davis-Bacon rates are exempt (MCL 408.1102).Source: MCL 408.1109, Inapplicability of act (2023 PA 10) (opens in a new tab), read from an archived copy dated December 24, 2025 (opens in a new tab)
Agency: Michigan Department of Labor and Economic Opportunity, Wage and Hour Division (opens in a new tab)Source: Michigan Department of Labor and Economic Opportunity, Prevailing Wage (opens in a new tab), checked October 6, 2026
Rates: Rate determinations (opens in a new tab)Official rate schedules by county, based on local collective bargaining agreements; they must be in the project specifications and bid documents.Source: Michigan Department of Labor and Economic Opportunity, Prevailing Wage (opens in a new tab), checked October 6, 2026
Certified payroll: LEO's online certified payroll database (opens in a new tab)Contractors and subcontractors transmit certified payroll records for each pay period not later than 10 days after it ends, to the department's online certified payroll database (MCL 408.1122); before April 2, 2026 they went to the contracting agent. Not required of a contractor that must already send certified payroll to the state transportation department, or for routine maintenance or repair on an energy facility project.Filed with: LEO's certified payroll database.Source: MCL 408.1122, Maintenance of records; transmission of payroll records; payroll database (opens in a new tab), read from an archived copy dated February 4, 2026 (opens in a new tab)
Registration: LEO Wage and Hour Division, Contractor Registration (opens in a new tab)Contractors and subcontractors need a state project registration to bid on, be listed in a bid for, or work on a state project (MCL 408.1102(3)-(5)); they register annually with the Wage and Hour Division and pay a $500 annual fee.Source: MCL 408.1102, Contracts for state projects (2023 PA 10) (opens in a new tab), read from an archived copy dated January 18, 2026 (opens in a new tab)

Federally funded work in Michigan

On a project whose federal funding carries Davis-Bacon, the federal rules apply whatever the state law says. Whether Michigan's own law applies as well is in its coverage above: some state laws leave federally funded projects out.

Davis-Bacon: Federal Davis-Bacon labor standards apply to contracts over $2,000 for the construction, alteration or repair of public buildings or public works, or of work financed with federal funds under a law that requires Davis-Bacon, one of the Related Acts (29 CFR 5.5(a)).Source: 29 CFR 5.5, Contract provisions and related matters (opens in a new tab), checked October 6, 2026
Certified payroll: On Davis-Bacon work, each contractor and subcontractor submits certified payrolls weekly, for each week of covered work; the prime contractor is responsible for its subcontractors' payrolls (29 CFR 5.5(a)(3)(ii)(A)).Source: 29 CFR 5.5, Contract provisions and related matters (opens in a new tab), checked October 6, 2026

More for Michigan contractors

WORKLIO HCM

Prevailing wage and certified payroll in Worklio HCM

Set up prevailing wage rates by project, location and classification: your team assigns each worker's classification and apprentice step, and payroll applies the rates. Fringe benefits are calculated as cash or plan contributions, union dues and benefit packages are deducted with remittance reports by local, apprentices are paid at progressive rates by level, and WH-347 certified payroll reports carry job costing segments. Workers' comp class codes are set per job and employee. Union, prevailing wage, and certified payroll is available as an add-on to any plan.

See the union, prevailing wage, and certified payroll add-on

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Sources

The statute, agency page or federal rule behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for paying the required rates and filing on time.

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