LOCAL GOVERNMENT PROHIBITIONS; MODIFY S.B. 1173:
SUMMARY OF BILL
REPORTED FROM COMMITTEE
Senate Bill 1173 (as reported without amendment)
Sponsor: Senator Jeremy Moss
Committee: Labor
CONTENT
The bill would amend the Local Government Labor Regulatory Limitation Act to do the
following:
-- Allow a local government to implement an ordinance, policy, or resolution requiring an
employer to pay an employee a wage higher than the State's minimum wage if the
ordinance, policy, or resolution were adopted after the bill's effective date and required
an employer to pay a higher wage as a prevailing wage.
-- Allow a local government to implement an ordinance, policy, or resolution limiting the
hours and scheduling of an employee who worked on a project to which a project labor
agreement applied.
-- Repeal Sections 6, 7, 10, 11, and 12 of the Act, which respectively prohibit a local
government from implementing an ordinance, policy, or resolution that requires the
payment of prevailing wage; regulates work stoppages and strikes; requires educational
apprenticeship programs; requires employers to pay specific fringe benefits; and creates
remedies for wage, hour, or benefit disputes.
MCL 123.1385 et al.
BRIEF RATIONALE
Public Act (PA) 105 of 2015 enacted the Local Government Labor Regulatory Limitation Act,
which effectively enacted a State preemption of local laws for employee wages and benefits;
however, some believe that local governments should be able to debate issues of employee
wages and benefits and decide what is best for their communities because local governments
have a vested interest in keeping money within their communities. For these reasons,
repealing specific preemptions in PA 105 has been suggested.
Legislative Analyst: Alex Krabill
FISCAL IMPACT
The bill would have no direct fiscal impact on the State or local government units. It could
have a potential impact on local government units as it would allow local governments, in
some cases, to be exempt from a ban on requiring higher wages than the State minimum
hourly wage rate. In those cases where a local government unit could impose a higher wage
on employers, contractors, and subcontractors, there could be an increase to costs to those
local government units.
Date Completed: 12-12-24 Fiscal Analyst: Bobby Canell
floor\sb1173 Bill Analysis @ www.senate.michigan.gov/sfa
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not
constitute an official statement of legislative intent.


Statutes affected:
Senate Introduced Bill: 123.1385, 123.1386
As Passed by the Senate: 123.1385, 123.1386