News

Repealing Right-to-Work and Reinstating Prevailing Wage

Published Thursday, March 16, 2023

Lansing has been a flurry of activity this past week. The repeal of the state's landmark Right to Work law, and reinstatement of prevailing wage, has kept lawmakers and the media quite busy. Following a few more procedural steps, the bills are expected to head to Governor Whitmer's desk. 

 Michigan became a Right to Work state in December 2012, allowing employees in unionized settings to opt out of paying union dues. Overturning that law means that employees in these settings must now pay union dues to retain their employment. This requirement will not extend to employees in the public sector, due to a ruling by the US Supreme Court in 2018. 

 The repeal was secured against a ballot box repeal by inclusion of a $1 million appropriation to inform the public of the new law. However, it could be challenged by a vote of the electorate to include Right to Work in the state's constitution, a strategy that is being considered

 Currently, 26 other states have Right to Work policies in place. 

 In 2018, the Legislature repealed the state's prevailing wage guideline. That meant that no longer would contractors be required to pay union wages and benefits on state-funded construction projects. Legislation that moved earlier this week would restore the prevailing wage guideline. That bill includes a $75,000 appropriation, which means it too will be protected from ballot box rejection. 

 The MBA will provide updates as this public policy moves forward, including its potential impact on the business community.