HF 2377

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to employment; modifying prevailing wage provisions; amending
Minnesota Statutes 2006, sections 177.42, subdivisions 4, 6; 177.43, subdivisions
1, 4, 5, 6, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 177.42, subdivision 4, is amended to read:

Subd. 4.

Prevailing hours of labor.

"Prevailing hours of labor" means the new text begin median
number of new text end hours of labor deleted text begin per day and deleted text end per week worked within the area by deleted text begin a larger number
of deleted text end workers of the same class deleted text begin than are deleted text end employed within the area deleted text begin for any other number of
hours per day and per week deleted text end . The prevailing hours of labor may not be more than deleted text begin eight
hours per day or more than deleted text end 40 hours per week.

Sec. 2.

Minnesota Statutes 2006, section 177.42, subdivision 6, is amended to read:

Subd. 6.

Prevailing wage rate.

"Prevailing wage rate" means the deleted text begin hourly basic rate
of pay plus the contribution for health and welfare benefits, vacation benefits, pension
benefits, and any other economic benefit paid to the largest number of deleted text end new text begin median hourly
compensation paid to new text end workers engaged in the same class of labor within the area and
includes, for the purposes of section 177.44, rental rates for truck hire paid to those who
own and operate the truck. new text begin The median hourly compensation includes the hourly basic
rate plus the contribution for health and welfare benefits, vacation benefits, pension
benefits, and other economic benefits. new text end The prevailing wage rate may not be less than a
reasonable and living wage.

Sec. 3.

Minnesota Statutes 2006, section 177.43, subdivision 1, is amended to read:

Subdivision 1.

Hours of labor.

Any contract which provides for a project must
state that:

(1) no laborer or mechanic employed directly on the project work site by the
contractor or any subcontractor, agent, or other person doing or contracting to do all or a
part of the work of the project, is permitted or required to work more hours than the
prevailing hours of labor unless paid for all hours in excess of the prevailing hours at a
rate of at least 1-1/2 times the hourly basic rate of pay; new text begin provided that the rate is only paid
on hours actually worked in excess of 40 hours per week; new text end and

(2) a laborer or mechanic may not be paid a lesser rate of wages than the prevailing
wage rate in the same or most similar trade or occupation in the area.

Sec. 4.

Minnesota Statutes 2006, section 177.43, subdivision 4, is amended to read:

Subd. 4.

Determination by commissioner.

The prevailing wage rates, prevailing
hours of labor, and hourly basic rates of pay for all trades and occupations required in any
project must be ascertained before the state asks for bids. The commissioner of labor and
industry shall investigate as necessary to ascertain the information. new text begin The commissioner
may require the contractor and subcontractor to furnish to the department certified payroll
records. new text end The commissioner shall keep the information posted on the project in at least one
conspicuous place for the information of the employees working on the project. A person
aggrieved by a final determination of the commissioner may petition the commissioner for
reconsideration of findings. A person aggrieved by a decision of the commissioner after
reconsideration may, within 20 days after the decision, petition the commissioner for a
public hearing in the manner of a contested case under sections 14.57 to 14.61.

Sec. 5.

Minnesota Statutes 2006, section 177.43, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Onsite interviews and compliance. new text end

new text begin The department shall develop
guidelines on the frequency and nature of onsite interviews of construction workers and
must establish written procedures for the filing and handling of complaints and inquiries
regarding possible noncompliance with sections 177.41 to 177.44.
new text end

Sec. 6.

Minnesota Statutes 2006, section 177.43, subdivision 5, is amended to read:

Subd. 5.

Penalty.

It is a misdemeanor for an officer or employee of the state to
execute a contract for a project without complying with this section, or for a contractor,
subcontractor, or agent to pay any laborer, worker, or mechanic employed directly on the
project site a lesser wage for work done under the contract than the prevailing wage rate as
stated in the contract. This misdemeanor is punishable by a fine of not more than $700,
or imprisonment for not more than 90 days, or both. Each agent or subcontractor shall
furnish to the contractor evidence of compliance with this section. Each day a violation
of this section continues is a separate offense. new text begin Upon request, the county attorney of the
county in which the work is located shall investigate and prosecute violations in a court
of competent jurisdiction.
new text end

Sec. 7.

Minnesota Statutes 2006, section 177.43, subdivision 6, is amended to read:

Subd. 6.

Examination of records.

The Department of Labor and Industry shall
enforce this section. The department may demand, and the contractor and subcontractor
shall furnish to the department, new text begin certified new text end copies of any or all payrolls. The department
may examine all records relating to wages paid laborers or mechanics on work to which
sections 177.41 to 177.44 apply.