The Michigan Supreme Court has agreed to hear ABC’s appeal
in a case that could lead to the invalidation of local prevailing wage ordinances throughout the state. The lawsuit seeks to overturn a May 2014 Michigan Court of Appeals ruling
, which overturned a previous Ingham County Circuit Court decision that ruled in ABC’s favor
As ABC of Michigan President Chris Fisher points out
, inconsistencies in local prevailing wage ordinances can lead to unnecessary administrative burdens for contractors who may need to alter their pay and benefit package for each prevailing wage project they work on.
ABC has long maintained that prevailing wage laws artificially inflate wages on taxpayer-funded construction projects. Furthermore, ABC believes that authority for determining any prevailing wage law should remain under the state’s control and does not believe that cities have the authority to determine their own prevailing wage.
“Given the conflicting court cases over the past few years, we agree with the Supreme Court that the legality of excessive and expensive local prevailing wage schemes needs to be taken under review,” said Fisher. “We believe a strong case will be made that these mandates are illegal, and that the Supreme Court will ultimately rule on the side of Michigan taxpayers.”