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Labor Standards -- Prevailing wage and contracting agencies

It is in the public interest that public buildings and other public works be constructed and maintained by the best means and highest quality of labor reasonably available and that people working on public works be compensated according to the real value of the services they perform. It is, therefore, the policy of this state that wages of laborers, workers and mechanics on projects financed in whole or part by state funds should be comparable to wages paid for similar work in the community as a whole.

Contract requirements

The bid proposal and contract must state the project is subject to prevailing wage.

The 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.

Applicability

This section applies to a contract or work under a contract, under which:

  1. only one trade or occupation is required to complete it and the project is greater than $2,500; or

  2. the estimated total cost of completing the project is greater than $25,000.

Prevailing wage contract clause

Effective July 1, 2009

The following language has been developed in compliance with Minnesota Statutes 177.43, subd. 3, and is required to be included in all contracts subject to Minnesota Statutes 177.41 to 177.44.

Pursuant to Minnesota Statutes 177.41 to 177.44 and corresponding Minnesota Rules 5200.1000 to 5200.1120, this contract is subject to the prevailing wages as established by the Minnesota Department of Labor and Industry. Specifically, all contractors and subcontractors must pay all laborers and mechanics the established prevailing wages for work performed under the contract. Failure to comply with the aforementioned may result in civil or criminal penalties.

For more information

Minnesota Department of Labor and Industry
Prevailing Wage
443 Lafayette Road N.
St. Paul, MN 55155
Phone:  (651) 284-5091
Email:  dli.prevwage@state.mn.us

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