How does prevailing wage work?

The original Minnesota prevailing wage law required all state agencies to establish prevailing wage rates for their building projects. The Department of Labor and Industry (DLI) was given the power to investigate complaints, collect survey data, define classes of labor for highway construction and determine state prevailing wage rates. An amendment was passed in 1975, authorizing DLI to set the rates for all building and road construction and increased the penalties for noncompliance.

Wage rates paid for comparable work are certified by the Department of Labor and Industry as the prevailing wage rates after the department conducts a survey of contractors, labor organizations and interested parties statewide. This information is furnished to entities covered by prevailing wage laws that are letting contracts for inclusion in their bid specifications. A notice is also published in the State Register annually, indicating where copies of the certified rates may be obtained.

Wage rates are established for two types of construction:

1. Highway/heavy -- construction and maintenance of highways, streets, airport runways, bridges, power plants, dams, wastewater treatment plants, water towers, high-voltage power lines and utilities.
   
   
2. Commercial construction -- building projects exclusive of residential construction. (Residential construction is defined as single- or two-family homes. Separate wage certifications are issued for each area.)

Prevailing wage | Notifications | Commercial | Highway and heavy