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A Better Partnership
December 11, 2014

MSC to consider whether cities may set minimum wages

The Michigan Supreme Court granted leave to appeal in Associated Builders and Contractors v. City of Lansing, No. 149622, in which the plaintiff challenged the City of Lansing’s prevailing wage ordinance. The court ordered the parties to brief the issue of whether Attorney General ex rel. Lennane v. City of Detroit, 225 Mich. 631 (1923) should be overruled. In Lennane, the Michigan Supreme Court struck down a Detroit ordinance that set the minimum wage for city contractors at the prevailing wage for similar work and set maximum work hours for non-emergency tasks. The court reasoned that the ordinance was unconstitutional because the city exercised police power vested in the state.

In May, the Michigan Court of Appeals held that the City of Lansing’s prevailing wage ordinance was valid because it did not violate the state constitution or state law.  The Court of Appeals found that Lennane did not apply because of subsequent constitutional amendments and changes in Michigan case law.  See our prior post here.

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