Michigan Senate Bill SB0438

Michigan 2025-2026 Regular Session

• Introduced: 6/24/25
• Refer: 6/24/25

Caption

Labor: hours and wages; 2023 PA 10; repeal. Repeals 2023 PA 10 (MCL 408.1101 - 408.1126).

Impact

If passed, SB0438 would remove the legal foundation for requiring that state projects pay their workers prevailing wages. This may lead to a decrease in the wage standards that were previously maintained under PA 10, giving contractors more freedom to set wages at lower levels. This action could affect the overall compensation and benefits that construction and labor workers receive on state projects, potentially discouraging skilled labor and impacting job quality.

Summary

Senate Bill No. 438 aims to repeal Public Act 10 of 2023, which mandated prevailing wages and fringe benefits for state projects in Michigan. By repealing this act, the bill effectively eliminates the requirements that were established for contracting agents and bidders regarding employee compensation on state-funded projects. The bill suggests a significant shift in labor practices related to public sector projects, potentially allowing greater flexibility in wage determinations by contractors.

Contention

The repeal of PA 10 is likely to ignite debates among various parties, including labor unions and contractors. Proponents of the repeal argue that it would reduce costs for the state and allow for more competitive bidding on contracts. In contrast, critics, including organized labor groups, contend that the repeal could undermine worker rights and lead to lower wages and benefits for workers involved in public projects, ultimately weakening the labor market and harming the economy by reducing purchasing power.