State of Michigan | Fraser Blog

Michigan Department of Technology, Management and Budget Prevailing Wage Policy Upheld by Court of Claims

On March 1, 2022, the State of Michigan began to require state contractors and subcontractors to pay prevailing wage on construction-based contracts issued by the Department of Technology, Management & Budget (“DTMB”).

The directive established the following guidelines for when the payment of a prevailing wage is required:

“With the exception of lease build-outs, if a project greater than $50,000 involves employing construction mechanics (e.g., asbestos, hazardous material handling, boilermaker, carpenter, cement mason, electrician, office reconstruction and installation, laborer including cleaning debris, scraping floors, or sweeping floors in construction areas, etc.) and is sponsored or financed in whole or in part by State funds, state contractors must pay prevailing wage.”

According to the State of Michigan, prevailing wage rates are established for each County in Michigan through a process of submission and review of established wages, benefits, and training investments from bona fide employee and employer organizations.

In July, 2021, the Associated Builders and Contractors of Michigan (“ABC”) filed a lawsuit against the State of Michigan with a motion for preliminary injunction asking the Court to enjoin DTMB from requiring prevailing wages for state contracts.

ABC argued that Michigan cannot require the wage rate of its contractors because of the repeal of Michigan’s prevailing wage law in 2018.

In October, the Michigan Court of Claims sided with the state and ruled that DTMB did not violate the law when it implemented its prevailing wage policy. The court granted DTMB’s motion for summary disposition, resulting in the dismissal of the case.

ABC has appealed the ruling. For the time being, pending the outcome of the appeal, DTMB’s prevailing wage policy remains in effect for construction projects financed in whole or in part by State of Michigan funds. We will continue to keep you informed about new developments in this case.

This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions.

Aaron L. Davis is Vice President and Treasurer, and Chair of Fraser Trebilcock’s labor law practice. He has litigation experience in a diverse range of employment matters, including Title VII, the Age Discrimination Employment Act, the Americans with Disabilities Act, the Family and Medical Leave Act, and the Fair Labor Standards Act. You can reach him at adavis@fraserlawfirm.com or (517) 377-0822.

State of Michigan Paid Administrative Leave – Detroit Free Press Feature

Aaron L. Davis, Fraser Trebilcock Shareholder, and Vice President and Treasurer, was interviewed recently by Paul Egan of the Detroit Free Press on the actions of the state of Michigan to place employees on paid administrative leave alleging misconduct to avoid civil service rules and to force out high-ranking employees that normally officials would have no authority to dismiss.

“Paid administrative leave has ‘been weaponized’ to try to force employees, particularly high-ranking ones who still have civil service protections, to leave on their own when there are no proper grounds for dismissal,” Davis said.

You can read the full story by following this link.

You can contact Aaron Davis at (517) 377-0822, or adavis@fraserlawfirm.com.

Governor Whitmer Orders Halt to Many Medical and Dental Services

Governor Gretchen Whitmer today signed Executive Order 2020-17, restricting non-essential medical and dental procedures in hospitals, surgery centers, clinics and medical offices. The order is wide-ranging and specific and provides examples of actions that may not be taken, and exceptions if applicable.

Many medical and dental providers have already initiated contact with patients to defer many scheduled appointments even prior to the Governor’s order, but these steps are no longer optional.

The stated purpose of the Order is “To mitigate the spread of COVID-19, protect the public health, provide essential protections to vulnerable Michiganders, and ensure the availability of health care resources, it is reasonable and necessary to impose temporary restrictions on non-essential medical and dental procedures.”

For more information regarding the Executive Order, follow the link here.

We have created a response team to the rapidly changing COVID-19 situation, and will continue to post any new developments. You can view the page and additional resources by following the link here. In the meantime, if you have any questions, please contact your Fraser Trebilcock attorney.

Governor Whitmer Executive Order Allows Public Bodies To Meet Electronically

UPDATE: On April 14, 2020, Governor Gretchen Whitmer signed Executive Order 2020-48, extending the duration of relief through May 12, 2020 for public bodies that are subject to the Open Meetings Act to use telephone or video conference methods to continue meeting and conduct business. With this new order, EO 2020-15 is rescinded.

With Executive Order 2020-48, public bodies that are subject to the Open Meetings Act can use telephone or video conferencing methods to continue meeting and conduct business. This will be allowed provided there is two-way communication for members and the public to hear and address each other.

This is a brief summary and does not constitute legal advice. We encourage you to review Executive Order 2020-48 as there are many terms which address how a public body meeting must be conducted.

March 19, 2020: Governor Whitmer through an executive order is temporarily allowing public bodies to meet electronically until April 15, as long as the method used facilitates public participation.

With Executive Order 2020-15, public bodies that are subject to the Open Meetings Act can now use telephone or video conferencing methods to continue meeting and conduct business. This will be allowed provided there is two-way communication for members and the public to hear and address each other.

This Order does not apply to nonprofit corporations that do not meet the definition of a “public body.” Nonprofit corporations that are not public bodies may conduct meetings by conference telephone or similar communications equipment provided all participants can communicate with each other, unless the articles or bylaws restrict such participation.

Edward J. Castellani is an attorney and CPA with Fraser Trebilcock and serves as Chair of the Firm’s Business and Tax Department. He may be contacted at ecast@fraserlawfirm.com or 517-377-0845.

Unclaimed Property – Is it Yours?

You might be surprised to find your name on the list of individuals and businesses with items of unclaimed property being held by the State of Michigan. Types of property being held are varied but include things such as undeliverable refund, dividend or payroll checks, life insurance proceeds, and even forgotten bank balances. Recently, Michigan has pushed financial institutions and other companies to turn over unclaimed property to the State. This push has resulted in more and more people showing up on the lists of unclaimed property. To find out if Michigan has any of your property, go to www.michigan.gov/treasury and click on Unclaimed Property.

Continue reading Unclaimed Property – Is it Yours?

Michigan’s Medicaid Estate Recovery Program

In light of Michigan’s relatively new Medicaid Estate Recovery Program, Medicaid recipients and their families should contact experienced legal counsel to help them plan ahead by implementing the tools that are currently available to avoid, or limit, Estate Recovery if possible. Further, if you are the representative or heir of a deceased Medicaid recipient and you receive a Notice of Intent to File Claim Against Estate, you should contact experienced legal counsel for assistance: before completing a Michigan Estate Recovery Questionnaire, with the timing of submission of any Application for Hardship Waiver, and with determining whether all or any portion of the state’s claim for recovery should be disallowed.

Continue reading Michigan’s Medicaid Estate Recovery Program