LANSING, Mich. (WLNS) — A lawsuit filed by the Associated Builders and Contractors of Michigan (ABC) has ended in favor of the Department of Technology (DTMB).
Judge Douglas Shapiro of the Michigan Court of Claims agreed with the Attorney General’s office that the DTMB did not violate the law when it implemented its prevailing wage policy.
“Michigan workers deserve to be paid a competitive wage,” said Nessel. “This ruling from the Court affirms the authority of the State to set best business practices and require fair wages be paid by those who do business with Michigan.”
According to the US Department of Labor, “The prevailing wage rate is defined as the average wage paid to similarly employed workers in a specific occupation in the area of intended employment.”
Back in July, the ABC filed a lawsuit against the state with a motion for a preliminary injunction.
ABC asked the Court to prevent DTMB from requiring prevailing wages for state contracts in excess of $50,000.
ABC claimed the State cannot require the wage rate of its contractors because of the repeal of Michigan’s prevailing wage law in 2018.
The Court denied ABC’s motion for preliminary injunction and granted DTMB’s motion for summary disposition.
The Court agreed that DTMB didn’t violate the separation of powers when it set the prevailing wage policy.
ABC’s appeal claim is due to the Michigan Court of Appeals by Oct. 31.
To read the order from the Court of Claims, click here.