Lansing Prevailing Wage Law Upheld in Michigan Court of Appeals Decision

LANSING — A prevailing wage law passed by the city of Lansing does not violate the Michigan Constitution nor home rule restrictions passed by the Michigan Legislature, a divided Michigan Court of Appeals panel¬†decided Wednesday.

The decision overturns a lower court ruling in favor of Associated Builders and Contractors, which had challenged the Lansing ordinance as unconstitutional, and says a 1923 court decision that barred cities from setting prevailing wage laws has been superseded by decisions over the last 90 years.

Lansing’s ordinance requires contractors working on city construction projects to pay a prevailing wage, which ABC had challenged as being outside the city’s authority under state law. ABC also cited a 1923 Michigan Supreme Court decision that barred the city of Detroit from enforcing a prevailing wage law. That opinion concluded that unless the state had given cities the authority to set such laws, cities could not enact rules governing wages.

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(Copy of Decision)