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. The contract must also provide that
the contracting agency shall demand, and the contractor and subcontractor shall furnish to the
contracting agency, copies of any or all payrolls not more than 14 days after the end of each
pay period. The payrolls must contain all the data required by section
. The contracting
authority may examine all records relating to wages paid laborers or mechanics on work to
Subd. 4. Determination by commissioner; posting; petition for reconsideration.
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.
Each contractor and subcontractor performing work on a public project 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
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; investigation by the department.
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
apply. The department shall employ at least three investigators to perform
on-site project reviews, receive and investigate complaints of violations of this section, and
conduct training and outreach to contractors and contracting authorities for public works projects
financed in whole or in part with state funds.
Subd. 6a. Prevailing wage violations.
Upon issuing a compliance order to an employer
pursuant to section
177.27, subdivision 4
, for violation of sections
commissioner shall issue a withholding order to the contracting authority ordering the contracting
authority to withhold payment of sufficient sum to the prime or general contractor on the project
to satisfy the back wages assessed or otherwise cure the violation, and the contracting authority
must withhold the sum ordered until the compliance order has become a final order of the
commissioner and has been fully paid or otherwise resolved by the employer.
During an investigation of a violation of sections
which the commissioner
reasonably determines is likely to result in the finding of a violation of sections
and the issuance of a compliance order pursuant to section
177.27, subdivision 4
commissioner may notify the contracting authority of the determination and the amount expected
to be assessed and the contracting authority shall give the commissioner 90 days' prior notice of
the date the contracting authority intends to make final payment.
Subd. 7. Applicability.
This section does not apply to a contract, or work under a contract,
(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; 2007 c 135 art 3 s 11-14