Michigan

  • Project Labor Agreements

    Adopted ABC model government neutrality bill. However, the legislature has targeted the Fair and Open Competition Act for repeal. As of the release of this scorecard in December 2024, repeal legislation is currently under active consideration during the lame duck session that resulted from Michigan Democrats losing their House majority for 2025-26. If the Fair and Open Competition Act is ultimately repealed, it will take effect later in 2025 and allow project labor agreements to be utilized on public projects across the state.

  • Prevailing Wage

    All state projects above $28,048 (the state bidding threshold) are subject to prevailing wage.

    The state’s prevailing wage was repealed in 2018 following a signature gathering effort that forced the legislature to consider issue. However, in 2022, Governor Gretchen Whitmer reinstated prevailing wage on construction projects via a legally questionable executive order. Courts upheld a challenge to the Governor’s order, ruling the statewide imposition of prevailing wage invalid, but expressly permitted municipalities to impose their own prevailing wage mandates. This was followed by full codification by the legislature in 2023 of their statewide prevailing wage policy.

  • Right to Work

    The Michigan Right to Work policy was repealed in 2023 and took effect in 2024.

  • Public-Private Partnerships

    Statute allows the Metro Transportation Authority to contract with government or private sector entities on certain vertical and horizontal projects. There is no broad P3 authorizing statute for vertical or horizontal projects.

  • Workforce Development Incentives

    Current labor supply satisfies 132.2% of peak labor demand.

     

  • Career and Technical Education

    96% of high school CTE students graduated, and 37.2% of postsecondary CTE students were placed in careers or apprenticeships.

    Michigan does not recognize NCCER as an approved curriculum for CTE programs.

  • Job Growth Rate

    4.2%.

Monthly Unemployment Rate in Michigan

Please see ABC's state-by-state construction unemployment data here.

Industry Overview

Prompt Pay

Private: No law in place.
Public: Owner must pay prime within 30 days of approved invoice or fifteen days after the public agency has received the funds.
Subs: No law in place.

Immigration/E-Verify Mandate

State DHS and DOT contractors and subcontractors for construction, maintenance and engineering services are required to use E-Verify. DOT contractors may be subject to a state audit to ensure E-Verify use.

Percentage of State GDP From Nonresidential Construction

4.1%.

Incidence Rate

2.5

Occupational Safety & Health Oversight (State vs. Federal)

State plan covers private workplaces and state and local government workplaces.

Percentage of Union Membership in Private Construction

20.1%.

Marijuana Legalization Status

Fully legalized for both medical and recreational use.

Business Facts

Minimum Wage

$9.65

Percentage of Pensions Funded

61.1%

Effective Real-Estate Tax Rate

1.31%

Corporate Income Tax Rate(s)

6.00%

State and Local Public Construction Expenditures (in millions)

$7,357
V
Overall Rank 33
  • Project Labor Agreements A
  • Prevailing Wage F
  • Right to Work F
  • Public-Private Partnerships C
  • Workforce Development Incentives A
  • Career & Technical Education F
  • Job Growth Rate B

Compared to

Michigan
 
National
A
PLA
C
C
PPP
C
A
WDI
C
F
CTE
C
B
JGR
B

Compared to the National Average

Michigan
 
National
A
PLA
C
C
PPP
C
A
WDI
C
F
CTE
C
B
JGR
B

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