2006 Minnesota Statutes

177.43 CONTRACTS FOR STATE PROJECTS; PENALTY.
    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; 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.
    Subd. 2. Exceptions. This section does not apply to wage rates and hours of employment of
laborers or mechanics who process or manufacture materials or products or to the delivery of
materials or products by or for commercial establishments which have a fixed place of business
from which they regularly supply processed or manufactured materials or products. This section
applies to laborers or mechanics who deliver mineral aggregate such as sand, gravel, or stone
which is incorporated into the work under the contract by depositing the material substantially in
place, directly or through spreaders, from the transporting vehicle.
    Subd. 3. Contract requirements. The contract must specifically state the prevailing wage
rates, prevailing hours of labor, and hourly basic rates of pay.
    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. 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.
    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.
    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, 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.
    Subd. 7. Applicability. This section does not apply to a contract, or work under a contract,
under which:
(1) the estimated total cost of completing the project is less than $2,500 and only one trade
or occupation is required to complete it, or
(2) the estimated total cost of completing the project is less than $25,000 and more than one
trade or occupation is required to complete it.
History: 1973 c 724 s 3; 1975 c 191 s 3,4; 1976 c 331 s 37; 1982 c 424 s 130; 1984 c 628
art 3 s 11; art 4 s 1