•
The proposed rule provides that, if a state agency, local governmental unit, or developer receiving more than $1,000,000 in direct financial assistance has not requested a prevailing wage rate determination for a project covered by the law, and the Department later issues a prevailing wage rate determination for such a project, then, in addition to the payment of the increased wages which the state agency, local governmental unit or developer must make to reimburse the employer of workers who were not correctly paid, the state agency, local governmental unit or developer must also reimburse the employer for any liquidated damages that employers may have been required to pay.
Comparison with federal regulations
The federal prevailing wage law (known as the Davis Bacon Act) applies to a federal public works project for which the contract cost is greater than $2,000. It does not apply to a private project which receives financial assistance from public funds unless the assistance is on such a scale that the project is determined to be a public project.
Comparison with rules in adjacent states
Minnesota:
Minnesota has a statutory threshold of $2,500 for a single-trade project and $25,000 for a multi-trade project. In addition to public works projects, the Minnesota law covers the construction of a “value-added agricultural product processing facility" that is financed in whole or part with certain state loans or grants.
Illinois:
Illinois does not have a threshold in its prevailing wage law. The law covers public works projects and defines public works projects as projects financed under various other specified laws. The Illinois law requires certified monthly payroll reports.
Michigan:
Michigan does not have a threshold in its prevailing wage law. The law covers projects that must be bid and relies on other agencies to determine the thresholds for what projects must be bid.
Iowa:
Iowa does not have a prevailing wage law.
Summary of factual data and analytical methodologies
The proposed rule is based on the new or amended requirements the statutes as affected by
2009 Act 28.
Small Business Impact
Because the proposed rule carries forward the new or amended requirements of the statutes as affected by
2009 Act 28, the proposed rule of itself does not have an effect on small business.
Fiscal Estimate
Assumptions used in arriving at fiscal estimate
The proposed rule does not create any new costs in the administration of the state prevailing wage program.
State fiscal effect
None.
Local government fiscal effect
None.
Long-range fiscal implications
None.
Agency Contact Person
Julie Eckenwalder, Section Chief
Construction Wage Standards Section
Phone: (608) 266-3148
