How is prevailing wage enforced?

Authority to investigate complaints of prevailing wage violations has been assigned to two state agencies. The Department of Transportation is the primary enforcing agency for all projects let out to bid for highway-related construction. All other investigations are conducted by the Minnesota Department of Labor and Industry or individual contract officers representing project owners.

The Department of Labor and Industry (DLI) is authorized to review payroll documents to determine compliance with prevailing wage rate provisions for all state construction projects, including highway construction.

The Department of Labor and Industry administers prevailing wage laws through the investigation of noncompliance complaints.

Our complain form can be mailed or found on our Web site.

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 be 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 a violation continues is a separate offense.

The Department of Transportation is authorized to request and examine copies of payroll forms from contractors and subcontractors. 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 a violation continues is a separate offense.

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.

Both state agencies have developed processes within their statutory authority to maximize compliance by all involved parties. While most contractors comply with agency orders to pay back-wages, project funds may be withheld by the letting agency until compliance is achieved.

Prevailing wage | Notifications | Commercial | Highway and heavy