1. When is the prevailing wage rate used?
2. What is the definition of a public works or related projects?
3. Are there project monetary thresholds?
4. Are any types of projects specifically exempted?
5. What is included in the calculation of wage rates?
6. Who calculates the prevailing wage rates?
7. Enforcement: what are the penalties for violations? Criminal or fines?
8. Can contractors be debarred?
9. Are there posting requirements?
10. Does the agency retain any fines for enforcement (i.e. an enforcement fund)?
11. Record Maintenance?
12. Are there any provisions which discuss apprentices?
When is the prevailing wage rate used?
Prevailing wage, established in Minnesota in 1973, is a system under which contractors and subcontractors doing work on construction projects that are partly or entirely paid for with state funds are required to pay their employees no less than a particular amount determined by the Department of Labor and Industry to be the "prevailing wage" for that particular employee's job and for the location where the work is being done.
What is the definition of a public works or related projects?
The prevailing wage requirements apply to state "projects." A project is defined as "erection, construction, remodeling, or repairing of a public building or other public work financed in whole or part by state funds."
Are there project monetary thresholds?
Prevailing wage provisions do not apply to a contract in which the total cost of the project is expected to be under $2,500 and only one trade or occupation is required to complete the project, or to a contract in which the total cost of the project is expected to be under $25,000 and more than one trade or occupation is required to complete it.
Are any types of projects specifically exempted?
Prevailing wage provisions do not apply to a contract in which the total cost of the project is expected to be under $2,500 and only one trade or occupation is required to complete the project, or to a contract in which the total cost of the project is expected to be under $25,000 and more than one trade or occupation is required to complete it.
What is included in the calculation of wage rates?
A) The system contains both a minimum hourly wage requirement and requirements for overtime pay after the employee works the "prevailing hours" for the day or week, which can be a maximum of eight hours per day or forty hours a week. Note that this differs from the regular state overtime requirements, which require overtime only after forty-eight hours in a week and contain no daily overtime provision.
B) When the information from the departments survey has been collected, the department determines which single wage is being paid to the largest number of employees, and that wage becomes the prevailing wage for that job in that place. Note that this number is not an average, but is instead the mode of all wages paid in the area, which can be higher or lower than the average.
Who calculates the prevailing wage rates?
The Department of Labor and Industry is responsible for conducting surveys in which it gathers information from contractors, labor organizations, and other interested parties about what wages are being paid to employees who do particular jobs in particular geographical areas. The department has established rules that explain how it conducts the survey.
Enforcement: what are the penalties for violations? Criminal or fines?
A) Minnesota Statutes '177.44 also states that anyone who forces an employee by any kind of threat to accept lower wages may be fined up to $1,000 and/or imprisoned for up to one year. It further provides that any employee who knowingly allows the contractor or subcontractor to pay less than the prevailing wage or who gives up any pay due may be fined up to $40, jailed not more than 30 days, or both. Each day that a violation continues is a separate offense.
B) The penalty for nonpayment by contractors and subcontractors is a misdemeanor punishable by a fine of not more than $300, imprisonment of not more than 90 days, or both. Each day that a violation continues is a separate offense.
C) Contract officers who administer contracts without prevailing wage compliance, and contractors, subcontractors or agents who knowingly pay workers below prevailing wage, are subject to misdemeanor penalties. Repetitive violations are considered a separate offense punishable by a maximum fine of $700, imprisonment for no more than 90 days or both.
Can contractors be debarred?
A) There is no information given in the Penalties section regarding debarment of a contractor.
B) However, it does state that the commissioner may reject the bid of any bidder who has failed to perform a previous contract with the state.
Are there posting requirements?
The schedule of prevailing wages, as certified by the Department of Labor and Industry, is required by law to be posted in at least one conspicuous place on each state construction project site.
Does the agency retain any fines for enforcement (i.e. an enforcement fund)?
There is no information that would lead me to believe that fines for prevailing wage violations are used for an enforcement fund in Minnesota.
Record Maintenance?
A record must be kept of all bids, including names of bidders, amounts of bids, and each successful bid. After the contract is awarded, this record is open to public inspection and may be posted on the Internet.
Are there any provisions which discuss apprentices?
There is no information given regarding apprentices. Furthermore, there is no definition given for an "employee" so it cannot be assumed that an apprentice falls under the prevailing wage act in Minnesota.
References
1.) Minnesota House of Representatives
* This is an informative web-site which gives information about Minnesota's Prevailing Wage Law. The information provided is stated as fact, but not as pieces of a law.
2.) Minnesota Department of Labor and Industry Brochure
* This is an informative brochure produced by the Minnesota Department of Labor to educate employers as well as the general public on the Minnesota Prevailing Wage Laws.