Attachment 3 - WHD 9918 Feb 2024.pdf
PDF 122 KB Posted
- Solicitation number
- RFP 591 260000001836 2
- Issued by
- Gogebic County, Michigan
About this file
This is an informational sheet on prevailing wage requirements issued by the State of Michigan's Wage and Hour Division (WHD), effective February 13, 2024. The document outlines mandatory wage and benefit standards for construction workers on state-funded projects. The prevailing rates are established based on collectively bargained agreements covering project locations and apply to all designated construction mechanic classifications, including overtime and premium pay requirements. The State of Michigan is responsible for establishing prevailing rates for each construction mechanic classification prior to contract issuance. The Department of Technology, Management and Budget (DTMB) must request rate re-determination if a contract is not awarded or construction does not commence within 90 days of rate issuance, and must obtain rates for classifications not included on the prevailing rate schedule before contracts are released for bid.
Contractors and subcontractors are required to post all prevailing rates in a conspicuous location on the construction site and maintain accurate records documenting worker names, occupations, and actual wages and benefits paid. The prevailing wage requirement is satisfied when combined wages and fringe benefits equal or exceed the required rate. Apprentices may only be paid at the apprentice rate if registered with the United States Department of Labor's Bureau of Apprenticeship and Training and the rate is included in the contract. Prime contractors are responsible for notifying all subcontractors of prevailing wage requirements before work begins. Violations of prevailing wage requirements under Act 10 of 2023 are subject to investigation and civil penalties, and material non-compliance may result in contract termination for cause at the contracting agent's sole discretion.
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Text version
STATE OF MICHIGAN
Wage and Hour Division PO Box 30476
Lansing, MI 48909 517-284-7800
Informational Sheet: Prevailing Wages on State Funded Projects
WHD 9918 (2/24)
REQUIREMENTS
Effective February 13, 2024
The purpose of establishing prevailing rates is to provide minimum rates of pay that must be paid to workers on construction projects that are financed or financially supported by the state Prevailing rates compiled from the rates contained in collectively bargained agreements which cover the locations of the state projects. While the prevailing wage rates are compiled through surveys of collectively bargained agreements, a collective bargaining agreement is not required for contractors to be on or be awarded state projects. The prevailing rate schedule provides an hourly rate which includes wage and fringe benefit totals for designated construction mechanic classifications. The overtime rates also include wage and fringe benefit totals. Please pay special attention to the overtime and premium pay requirements. The prevailing wage is satisfied when wages plus fringe benefits are equal to or greater than the required rate.
State of Michigan responsibilities:
• The department establishes the prevailing rate for each classification of construction mechanic requested by the contracting agents prior to contracts being let out for bid on a state project.
DTMB responsibilities
• If a contract is not awarded or construction does not start within 90 days of the date of the issuance of rates, a re- determination of rates must be requested by the contracting agents.
• Rates for classifications needed but not provided on the Prevailing Rate Schedule, must be obtained prior to contracts being let out for bid on a state project.
Contractor responsibilities:
• Every contractor and subcontractor shall keep posted on the construction site, in a conspicuous place, a copy of all prevailing rates prescribed in a contract.
• Every contractor and subcontractor shall keep an accurate record showing the name and occupation of and the actual wages and benefits paid to each construction mechanic. This record shall be available for reasonable inspection by DTMB or the department.
• Each contractor or subcontractor is liable for the payment of the prevailing rate to its employees.
• The prime contractor is responsible for advising all subcontractors of the requirement to pay the prevailing rate prior to commencement of work.
• A construction mechanic shall only be paid the apprentice rate if registered with the United States Department of Labor, Bureau of Apprenticeship and Training and the rate is included in the contract.
Enforcement:
A person who has information of an alleged prevailing wage violation on a prevailing wage project may file a complaint with the State of Michigan. The department will investigate and attempt to resolve the complaint informally. During the course of an investigation, if the requested records and posting certification are not made available in compliance with contractual requirements, the Contracting Agent may consider the Contractor to be in material breach of the contract and may terminate the contract for cause at the sole discretion. There are also civil penalties for failure to be in compliance with Act 10. View the entire text of Act 10 of 2023 at michigan.gov/wagehour.
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