Michigan took another step toward economic recovery and job creation today with the Senate’s passage of House Bill 4052 preempting local prevailing wage and employment laws, says Associated Builders and Contractors of Michigan (ABCMI). The move will prohibit the creation of new local prevailing wage mandates. The handful of communities that currently have a prevailing wage mandate are currently subject to legal review by the Michigan Supreme Court in a lawsuit brought by ABC.

“To continue to advance Michigan’s economic rebound and competitiveness, we need to consistently limit costly prevailing wage and other wage rules from one locality to another,” says Chris Fisher, ABC president.  

Local government erroneously believing they can mandate certain wage rates and other rules is burdensome to Michigan’s job providers, especially those that operate in several locales, such as franchises and multi-facility operations. Eliminating the confusion and bureaucratic workload for employers will have a positive effect on job creation, ABC says.

“The hodgepodge of costly rules that now exist across the state are deterring economic growth that creates new jobs,” explains Fisher.  “The compliance challenges such disparate rules create send a negative message to employers, many of which have a choice whether to operate in Michigan.  Instead, we need to convey that Michigan supports its employers and values the jobs they offer to its citizens. 

“Enacting HB 4052 into law to help protect workers and taxpayers from prevailing wage waste will be another important milestone in Michigan’s economic rebound.”