Construction companies pay $54K in back-wages to workers involved in state-funded project

Following investigations by the Minnesota Department of Labor and Industry (DLI), two construction companies have agreed to pay a total of $54,000 in back-wages to workers involved in a roof replacement project at Camp Ripley in 2018 and 2019.

DLI found that Azure Construction Inc., of Detroit Lakes, Minnesota, misclassified workers involved in the project, resulting in the workers being paid less than the prevailing-wage rate for the work they performed. The company agreed to pay $35,727.08 in back-wages owed to nine construction workers, with back-wage amounts ranging from $413.70 to $6,597.05. The company was also fined $8,000 for failing to keep and maintain adequate employee records.

In addition, DLI also found another company involved in the project, Western Products Inc., of Moorhead, Minnesota, misclassified workers and paid them less than the prevailing-wage rate. The company agreed to pay $18,779.09 in back-wages owed to 11 workers.

Prevailing wage is the minimum hourly wage employers must pay their employees performing construction work on projects funded in whole or in part with state dollars. DLI sets the prevailing-wage rates to be comparable to wages paid for similar work in the county where the construction project is located.

"Skilled construction workers involved in state-funded projects must be paid the appropriate prevailing-wage rate based on the services they perform," said Roslyn Robertson, DLI commissioner.

Learn more

DLI is available for consultations to inform project participants, including contractors and subcontractors, about prevailing wage, compliance and best practices. Contractors that perform work on state-financed construction projects can sign up for prevailing-wage notifications.

View more information about prevailing wage. Contractors planning to bid on projects subject to Minnesota's prevailing-wage law should contact DLI with questions before bidding or entering into construction contracts.