Federal Davis-Bacon Act

The United States Congress passed the Davis-Bacon Act in 1931. The Davis-Bacon Act was enacted to prevent non-local contractors from invading a region, using cheap, untrained labor to build sub-standard projects and moving on to another region. The Act was designed to create a level playing field with regard to labor cost, so that contractors are allowed to bid projects based on their skills and efficiencies without disrupting local wage rates. Since the Act was enacted in 1931, Congress has added prevailing wage provisions to approximately 60 statutes which assist construction projects through grants, loans, loan guarantees, and insurance. These “Related Acts” involve construction in such areas as transportation, housing, air and water pollution reduction and health.

Michigan Prevailing Wage Act (Public Act 166, MCL 408.551)
Passed in 1965, enacted in 1966, Public Act 166 largely mirrors the Federal Davis-Bacon Act. Public Act 166 applies to construction projects that contain state funding and are not covered by the Federal Davis-Bacon Act.