Minnesota Prevailing Wage Information
GENERAL INFORMATION
Prevailing wage is the minimum hourly wage employers must pay certain workers who work on construction projects where state dollars are used to fund the construction. The prevailing wage includes the employer's cost of benefits. The Minnesota Department of Labor and Industry sets the prevailing wage rates to be comparable to wages paid for similar work in the county where the construction project is located. These are called the "certified" prevailing wage rates.
Any construction project funded in whole or in part by state funds requires workers to be paid prevailing wages. For example, state-funded projects can be projects to construct highways, roads, wastewater treatment plants, public utilities, colleges, schools or park and recreation improvements.
Definitions of the types of constructions
Commercial construction "Commercial construction" means all building construction projects exclusive of residential construction.
Highway and heavy construction "Highway and heavy construction" means all construction projects which are similar in nature to those projects based upon bids as provided under Minnesota Statutes, section 161.32 for the construction or maintenance of highways or other public works and includes roads, highways, streets, airport runways, bridges, power plants, dams, and utilities.
Residential construction or agricultural construction "Residential construction or agricultural construction" means all construction, remodeling, or repairing of single or two family homes and structures appurtenant thereto including agricultural or farming buildings appurtenant to private farm residences when utilized to carry on primary farming operations.
Current prevailing wage rates
The prevailing wage rate will depend on the type of work that the worker is performing.
Commercial construction prevailing wage rates must be paid on state-funded building projects, including state-owned buildings, colleges and schools. Please See the following link for updated rates:
Commercial wage rates certified (12/08/14)
Highway/heavy prevailing wage rates must be paid on state-funded public works projects, including highways, roads, airport runways, bridges, power plants, dams and utilities. Please See the following link for the most recent wage rates:
Highway/heavy rates certified (10/20/14)
THRESHOLDS
Minnesota’s prevailing wage law states the following:
1) if more than one trade or occupation is involved, the total cost of completing the public works project is $25,000
2) AND if a single trade or occupation is involved, the estimated total cost of completing the project is $2,500
TIMING OF WAGE DETERMINATIONS & INCREASES
The certification in effect at the time the project is advertised (bids are asked for) applies for the duration of the project.
OVERTIME
The Minnesota Prevailing Wage Act does not include a provision for payment of daily overtime per trade. Thus, state law must be applied. Under state law, employees must be paid for working overtime for any hours worked in excess of eight hours per day and forty hours per week. Overtime compensation is calculated at a rate of at least 1.5 times the basic hourly rate plus fringe benefits as determined by the federal and/or state government.
WORKING ON WEEKENDS
Minnesota does not have a separate provision in its prevailing wage laws regarding working on the weekend, thus same state overtime rules apply. Please See, “Overtime” above.
WORKING ON LEGAL HOLIDAYS
The Minnesota prevailing wage laws do not have different law regarding working on legal holidays. Thus, same state overtime laws apply. Please See, “overtime” section above.
SHIFT DIFFERENTIALS
The Minnesota prevailing wage law does not maintain a provision for payment of different wages depending on the shift worked throughout the day per trade.
FRINGE BENEFITS
Minnesota prevailing wage law allows payment for fringe benefits. The state provides a credit towards the total prevailing wage rate for bone fide fringe benefits such as: health insurance; pension plans; and holiday, vacation, and sick plans.
TRAINING CONTRIBUTION
The Minnesota prevailing wage law does not address training contribution. Moreover, training contribution does not qualify as an allowable bone-fide fringe benefit. Please See, “Fringe Benefits” above.
APPRENTICE REQUIREMENTS
Apprentices working on state projects are not subject to the prevailing-wage rate determinations, except as they may be affected by registered apprenticeship agreements. The hourly rates of pay for such workers are established by the particular program to which the apprentice or trainee is subject.
Apprentice requirements are as follows:
1) a person employed and registered in a bona fide apprenticeship program registered with the U.S. Department of Labor or with a state apprenticeship program; and
2) a person in the first 90 days of probationary employment as an apprentice who is not registered in the program but who has been certified by the U.S. Bureau of Apprenticeship and Training or a state apprenticeship agency or council to be eligible for probationary employment as an apprentice.
Exception to the definition: Any employee listed on a payroll for a state project who does not fall within the term "apprentice" as described above, shall be paid the prevailing-wage rate for the classification of work performed.
The titles of unskilled worker, trainee, laborer, registered or unlicensed trade are not to be used interchangeably with "apprentice" to avoid the requirements of prevailing-wage law.
Please See, the following link for additional information regarding Apprenticeship Agreements:
Minnesota Rules 5200.0290 to 5200.0420.
TRAVEL & SUBSISTENCE
Generally, workers are required to be compensated for travel, mileage, lodging or subsistence pay while working on prevailing wage projects because the prevailing wage is the minimum wage requirement. Employees may not be compensated lower than this wage rate, which may occur if they have to pay for travel or subsistence out of pocket.
CONTRACTOR LICENSING
The Minnesota Department of Commerce licenses residential builders and remodelers. To check if a company or individual holds a license in Minnesota, call (651) 296-6319 or (800) 657-3978.
Search for a Company or an Individual that holds a License in Minnesota
Minnesota's Contractor Licensing Policy
Specifically, the following are trades that are required to be licensed:
1) Backflow prevention certification
2) Boats for hire
3) Boiler operators
4) Building officials
5) Personal Electrical license—master, journeyman, maintenance, and unlicensed
6) Electrical or elevator contractor licensing
7) High-pressure piping
8) Independent contractor exemption certification
9) Manufactured home manufacturers, dealers, limited dealers and installers
10) Mechanical contractor bond
11) Plumber licensing
12) Registration forms for plumbers apprentice and unlicensed individuals
13) Residential building and remodeling contractor licensing (Residential renewals and residential contractor license renewal FAQ and common
mistakes)
14) Residential roofing contractors
15) Technology system contractor licensing
16) Water conditioning license
In Minnesota, subcontractors, or anyone that conducts heating, cooling or ventilation work is not required to be licensed except for those in plumbing and electrical occupations. Moreover, contractors working on roads or bridges are not required to be licensed.
Contractor Licensing Forms and Applications
DUTIES OF CONTRACTORS/SUBCONTRACTORS
Every employer on a prevailing wage project, from general contractor to subcontractor, is required to maintain records including:
1) employee name and identifying number;
2) prevailing wage master job classification;
3) hours worked each day, total hours, rate of pay and gross amount earned;
4) each deduction for taxes, total deductions and net pay for the week; and
5) dollars contributed each hour for each beneit, including the name and address of the beneit administrator, the beneit account number and the telephone number for health and welfare, vacation or holiday, apprenticeship training, pension and other beneit programs.
The project contract must specifically state the prevailing wage rates, prevailing hours of labor and hourly basic rates of pay.
The contract must also provide that the contracting agency shall demand, and the contractor and subcontractor shall furnish to the contracting agency, copies of any or all payrolls not more than 14 days after the end of each pay period.
MANDATORY STATE POSTERS
The following are mandatory state posters:
1) age discrimination (April 2012)
2) minimum wage rates (August 2014)
3) Safety and health on the job (April 2012)
4) Unemployment (December 2010)
5) Workers Compensation (April 2012)
Please See “Helpful Links” to view posters. Additionally, the following US government agencies have mandatory poster requirements:
Equal Employment Opportunity Commission
Communications and Legislative Affairs
1801 L Street N.W., Room 9405
Washington, D.C. 20507
Phone: 1-800-669-3362
New poster requirement for most private-sector employers, effective April 30, 2012
National Labor Relations Board
Region 18
330 S. Second Ave., Suite 790
Minneapolis, MN 55401-2221
Phone: (612) 348-1757
U.S. Department of Labor
Wage and Hour Division
220 S. Second Street, Room 106
Minneapolis, MN 55401
Phone: 1-866-487-9243
You can obtain the mandatory workplace posters five ways. When ordering, include a contact's name, mailing address and phone number.
1. Print the posters from this Web page; they are linked above as PDFs.
2. Order free, mandatory workplace posters online.
3. Call (651) 284-5042 to place an order by phone; outside the Twin Cities metropolitan area, call 1-800-342-5354.
4. Email a request to [email protected] that includes a business name, a contact name, mailing address and phone number, as well as the
number of poster packets needed.
5. Send a request by mail to:
CRT Poster Request, Minnesota Department of Labor and Industry
443 Lafayette Road N.
St. Paul, MN 55155.
PENALTIES
The Minnesota Department of Transportation is the primary enforcing agency on all projects let out to bid for highway-related construction. DLI conducts all other investigations. DLI is authorized to review payroll documents to determine compliance with prevailing wage rate provisions on all state projects.
Violators of prevailing wage regulations will be assessed back-wages that will be distributed to aggrieved employees and may be assessed penalties. The statute also allows for criminal penalties and prosecution in certain situations.
Contracts for state projects
It is a misdemeanor for an officer or employee of the state to execute a contract for a project without complying with this section, or for a contractor, subcontractor, or agent to pay any laborer, worker, or mechanic employed directly on the project site a lesser wage for work done under the contract than the prevailing wage rate as stated in the contract. This misdemeanor is punishable by a fine of not more than $700, or imprisonment for not more than 90 days, or both. Each agent or subcontractor shall furnish to the contractor evidence of compliance with this section. Each day a violation of this section continues is a separate offense.
Highway contracts
A contractor, subcontractor, or agent who violates this section is guilty of a misdemeanor and may be fined not more than $300 or imprisoned not more than 90 days or both. Each day that the violation continues is a separate offense.
Whoever induces a job applicant or employee on any project subject to this section to give up or forgo any part of the wages to which entitled under the contract governing the project by threat not to employ, by threat of dismissal from employment, or by any other means may be fined not exceeding $1,000 or imprisoned not more than one year or both.
Any employee under this section who knowingly permits the contractor or subcontractor to pay less than the prevailing wage rate set forth in the contract, or who gives up any part of the compensation to which entitled under the contract, may be fined not exceeding $40 or imprisoned not more than 30 days or both. Each day any violation of this paragraph continues is a separate offense.
Underpayment of prevailing wage rates on state-funded projects
If an employer pays less than the prevailing wage, DLI requires the employer to pay back wages to the worker to make up the difference. Our agency can also require the employer to pay penalties for failure to comply with the prevailing wage law.
Filing a complaint for underpayment
To file a complaint, complete the complaint form. The agency will review the complaint and decide whether to investigate. The agency will inform the complainant if they will investigate his or her complaint.
DEBARMENT
The Minnesota prevailing wage laws do not address debarment. Moreover, neither the Department of Labor and Industry nor the Department of Transportation maintain a website listing debarred employees.
HELPFUL LINKS
Labor Standards Homepage
Minnesota statutes and regulations
Minnesota prevailing wage act (Please See Minnesota Statutes 177.41 through 177.44)
Minnesota prevailing wage rules (Please See Minnesota Rules 5200.1000 through 5200.1120)
Work classification description for laborers (Please See Minnesota Rules 5200.1101)
Work classification descriptions for special crafts: Please See Minnesota Rules 5220.1102
Definitions of construction types: Please See Minnesota Rules 5200.1010
To purchase a compilation of prevailing wage regulations in book format from Minnesota’s bookstore
Prevailing wage enforcement links:
2014 review of prevailing wage investigations
2013 review of prevailing wage investigations
2012 review of prevailing wage investigations
FAQs
Know your rights brochure
Prevailing Wage minimum truck rental rates
Email Notification of prevailing wage rate changes
Request to receive notices of agency rule proceedings
Prevailing wage survey
Age discrimination poster
Minimum wage rates
Safety and health on the job poster
Unemployment poster
Workers Compensation poster
CONTACT INFORMATION
Minnesota Department of Labor and Industry
Prevailing Wage
443 Lafayette Road N.
St. Paul, MN 55155
Phone: (651) 284-5091
Email: [email protected]
Prevailing wage is the minimum hourly wage employers must pay certain workers who work on construction projects where state dollars are used to fund the construction. The prevailing wage includes the employer's cost of benefits. The Minnesota Department of Labor and Industry sets the prevailing wage rates to be comparable to wages paid for similar work in the county where the construction project is located. These are called the "certified" prevailing wage rates.
Any construction project funded in whole or in part by state funds requires workers to be paid prevailing wages. For example, state-funded projects can be projects to construct highways, roads, wastewater treatment plants, public utilities, colleges, schools or park and recreation improvements.
Definitions of the types of constructions
Commercial construction "Commercial construction" means all building construction projects exclusive of residential construction.
Highway and heavy construction "Highway and heavy construction" means all construction projects which are similar in nature to those projects based upon bids as provided under Minnesota Statutes, section 161.32 for the construction or maintenance of highways or other public works and includes roads, highways, streets, airport runways, bridges, power plants, dams, and utilities.
Residential construction or agricultural construction "Residential construction or agricultural construction" means all construction, remodeling, or repairing of single or two family homes and structures appurtenant thereto including agricultural or farming buildings appurtenant to private farm residences when utilized to carry on primary farming operations.
Current prevailing wage rates
The prevailing wage rate will depend on the type of work that the worker is performing.
Commercial construction prevailing wage rates must be paid on state-funded building projects, including state-owned buildings, colleges and schools. Please See the following link for updated rates:
Commercial wage rates certified (12/08/14)
Highway/heavy prevailing wage rates must be paid on state-funded public works projects, including highways, roads, airport runways, bridges, power plants, dams and utilities. Please See the following link for the most recent wage rates:
Highway/heavy rates certified (10/20/14)
THRESHOLDS
Minnesota’s prevailing wage law states the following:
1) if more than one trade or occupation is involved, the total cost of completing the public works project is $25,000
2) AND if a single trade or occupation is involved, the estimated total cost of completing the project is $2,500
TIMING OF WAGE DETERMINATIONS & INCREASES
The certification in effect at the time the project is advertised (bids are asked for) applies for the duration of the project.
OVERTIME
The Minnesota Prevailing Wage Act does not include a provision for payment of daily overtime per trade. Thus, state law must be applied. Under state law, employees must be paid for working overtime for any hours worked in excess of eight hours per day and forty hours per week. Overtime compensation is calculated at a rate of at least 1.5 times the basic hourly rate plus fringe benefits as determined by the federal and/or state government.
WORKING ON WEEKENDS
Minnesota does not have a separate provision in its prevailing wage laws regarding working on the weekend, thus same state overtime rules apply. Please See, “Overtime” above.
WORKING ON LEGAL HOLIDAYS
The Minnesota prevailing wage laws do not have different law regarding working on legal holidays. Thus, same state overtime laws apply. Please See, “overtime” section above.
SHIFT DIFFERENTIALS
The Minnesota prevailing wage law does not maintain a provision for payment of different wages depending on the shift worked throughout the day per trade.
FRINGE BENEFITS
Minnesota prevailing wage law allows payment for fringe benefits. The state provides a credit towards the total prevailing wage rate for bone fide fringe benefits such as: health insurance; pension plans; and holiday, vacation, and sick plans.
TRAINING CONTRIBUTION
The Minnesota prevailing wage law does not address training contribution. Moreover, training contribution does not qualify as an allowable bone-fide fringe benefit. Please See, “Fringe Benefits” above.
APPRENTICE REQUIREMENTS
Apprentices working on state projects are not subject to the prevailing-wage rate determinations, except as they may be affected by registered apprenticeship agreements. The hourly rates of pay for such workers are established by the particular program to which the apprentice or trainee is subject.
Apprentice requirements are as follows:
1) a person employed and registered in a bona fide apprenticeship program registered with the U.S. Department of Labor or with a state apprenticeship program; and
2) a person in the first 90 days of probationary employment as an apprentice who is not registered in the program but who has been certified by the U.S. Bureau of Apprenticeship and Training or a state apprenticeship agency or council to be eligible for probationary employment as an apprentice.
Exception to the definition: Any employee listed on a payroll for a state project who does not fall within the term "apprentice" as described above, shall be paid the prevailing-wage rate for the classification of work performed.
The titles of unskilled worker, trainee, laborer, registered or unlicensed trade are not to be used interchangeably with "apprentice" to avoid the requirements of prevailing-wage law.
Please See, the following link for additional information regarding Apprenticeship Agreements:
Minnesota Rules 5200.0290 to 5200.0420.
TRAVEL & SUBSISTENCE
Generally, workers are required to be compensated for travel, mileage, lodging or subsistence pay while working on prevailing wage projects because the prevailing wage is the minimum wage requirement. Employees may not be compensated lower than this wage rate, which may occur if they have to pay for travel or subsistence out of pocket.
CONTRACTOR LICENSING
The Minnesota Department of Commerce licenses residential builders and remodelers. To check if a company or individual holds a license in Minnesota, call (651) 296-6319 or (800) 657-3978.
Search for a Company or an Individual that holds a License in Minnesota
Minnesota's Contractor Licensing Policy
Specifically, the following are trades that are required to be licensed:
1) Backflow prevention certification
2) Boats for hire
3) Boiler operators
4) Building officials
5) Personal Electrical license—master, journeyman, maintenance, and unlicensed
6) Electrical or elevator contractor licensing
7) High-pressure piping
8) Independent contractor exemption certification
9) Manufactured home manufacturers, dealers, limited dealers and installers
10) Mechanical contractor bond
11) Plumber licensing
12) Registration forms for plumbers apprentice and unlicensed individuals
13) Residential building and remodeling contractor licensing (Residential renewals and residential contractor license renewal FAQ and common
mistakes)
14) Residential roofing contractors
15) Technology system contractor licensing
16) Water conditioning license
In Minnesota, subcontractors, or anyone that conducts heating, cooling or ventilation work is not required to be licensed except for those in plumbing and electrical occupations. Moreover, contractors working on roads or bridges are not required to be licensed.
Contractor Licensing Forms and Applications
DUTIES OF CONTRACTORS/SUBCONTRACTORS
Every employer on a prevailing wage project, from general contractor to subcontractor, is required to maintain records including:
1) employee name and identifying number;
2) prevailing wage master job classification;
3) hours worked each day, total hours, rate of pay and gross amount earned;
4) each deduction for taxes, total deductions and net pay for the week; and
5) dollars contributed each hour for each beneit, including the name and address of the beneit administrator, the beneit account number and the telephone number for health and welfare, vacation or holiday, apprenticeship training, pension and other beneit programs.
The project contract must specifically state the prevailing wage rates, prevailing hours of labor and hourly basic rates of pay.
The contract must also provide that the contracting agency shall demand, and the contractor and subcontractor shall furnish to the contracting agency, copies of any or all payrolls not more than 14 days after the end of each pay period.
MANDATORY STATE POSTERS
The following are mandatory state posters:
1) age discrimination (April 2012)
2) minimum wage rates (August 2014)
3) Safety and health on the job (April 2012)
4) Unemployment (December 2010)
5) Workers Compensation (April 2012)
Please See “Helpful Links” to view posters. Additionally, the following US government agencies have mandatory poster requirements:
Equal Employment Opportunity Commission
Communications and Legislative Affairs
1801 L Street N.W., Room 9405
Washington, D.C. 20507
Phone: 1-800-669-3362
New poster requirement for most private-sector employers, effective April 30, 2012
National Labor Relations Board
Region 18
330 S. Second Ave., Suite 790
Minneapolis, MN 55401-2221
Phone: (612) 348-1757
U.S. Department of Labor
Wage and Hour Division
220 S. Second Street, Room 106
Minneapolis, MN 55401
Phone: 1-866-487-9243
You can obtain the mandatory workplace posters five ways. When ordering, include a contact's name, mailing address and phone number.
1. Print the posters from this Web page; they are linked above as PDFs.
2. Order free, mandatory workplace posters online.
3. Call (651) 284-5042 to place an order by phone; outside the Twin Cities metropolitan area, call 1-800-342-5354.
4. Email a request to [email protected] that includes a business name, a contact name, mailing address and phone number, as well as the
number of poster packets needed.
5. Send a request by mail to:
CRT Poster Request, Minnesota Department of Labor and Industry
443 Lafayette Road N.
St. Paul, MN 55155.
PENALTIES
The Minnesota Department of Transportation is the primary enforcing agency on all projects let out to bid for highway-related construction. DLI conducts all other investigations. DLI is authorized to review payroll documents to determine compliance with prevailing wage rate provisions on all state projects.
Violators of prevailing wage regulations will be assessed back-wages that will be distributed to aggrieved employees and may be assessed penalties. The statute also allows for criminal penalties and prosecution in certain situations.
Contracts for state projects
It is a misdemeanor for an officer or employee of the state to execute a contract for a project without complying with this section, or for a contractor, subcontractor, or agent to pay any laborer, worker, or mechanic employed directly on the project site a lesser wage for work done under the contract than the prevailing wage rate as stated in the contract. This misdemeanor is punishable by a fine of not more than $700, or imprisonment for not more than 90 days, or both. Each agent or subcontractor shall furnish to the contractor evidence of compliance with this section. Each day a violation of this section continues is a separate offense.
Highway contracts
A contractor, subcontractor, or agent who violates this section is guilty of a misdemeanor and may be fined not more than $300 or imprisoned not more than 90 days or both. Each day that the violation continues is a separate offense.
Whoever induces a job applicant or employee on any project subject to this section to give up or forgo any part of the wages to which entitled under the contract governing the project by threat not to employ, by threat of dismissal from employment, or by any other means may be fined not exceeding $1,000 or imprisoned not more than one year or both.
Any employee under this section who knowingly permits the contractor or subcontractor to pay less than the prevailing wage rate set forth in the contract, or who gives up any part of the compensation to which entitled under the contract, may be fined not exceeding $40 or imprisoned not more than 30 days or both. Each day any violation of this paragraph continues is a separate offense.
Underpayment of prevailing wage rates on state-funded projects
If an employer pays less than the prevailing wage, DLI requires the employer to pay back wages to the worker to make up the difference. Our agency can also require the employer to pay penalties for failure to comply with the prevailing wage law.
Filing a complaint for underpayment
To file a complaint, complete the complaint form. The agency will review the complaint and decide whether to investigate. The agency will inform the complainant if they will investigate his or her complaint.
DEBARMENT
The Minnesota prevailing wage laws do not address debarment. Moreover, neither the Department of Labor and Industry nor the Department of Transportation maintain a website listing debarred employees.
HELPFUL LINKS
Labor Standards Homepage
Minnesota statutes and regulations
Minnesota prevailing wage act (Please See Minnesota Statutes 177.41 through 177.44)
Minnesota prevailing wage rules (Please See Minnesota Rules 5200.1000 through 5200.1120)
Work classification description for laborers (Please See Minnesota Rules 5200.1101)
Work classification descriptions for special crafts: Please See Minnesota Rules 5220.1102
Definitions of construction types: Please See Minnesota Rules 5200.1010
To purchase a compilation of prevailing wage regulations in book format from Minnesota’s bookstore
Prevailing wage enforcement links:
2014 review of prevailing wage investigations
2013 review of prevailing wage investigations
2012 review of prevailing wage investigations
FAQs
Know your rights brochure
Prevailing Wage minimum truck rental rates
Email Notification of prevailing wage rate changes
Request to receive notices of agency rule proceedings
Prevailing wage survey
Age discrimination poster
Minimum wage rates
Safety and health on the job poster
Unemployment poster
Workers Compensation poster
CONTACT INFORMATION
Minnesota Department of Labor and Industry
Prevailing Wage
443 Lafayette Road N.
St. Paul, MN 55155
Phone: (651) 284-5091
Email: [email protected]
