Frequently asked questions -- prevailing wage

Questions

1.Who is covered by Minnesota prevailing wage laws?

2. Why is it required?

3. How does prevailing wage work?

4. How are rates set?
State law requires each wage rate be based on the actual wage rates paid to the largest number of workers within each labor classification reported in the statewide survey.

An administrative law judge agreed that the calculation to be used is the mode or most frequently occurring wage rate. For example, if the survey data shows that two bricklayers in a county earned $19.40 an hour, another earned $17.25 and one earned $22.67, the prevailing hourly wage rate would be $19.40.

If there is an equal number of workers with differing hourly wage rates, the rules state the highest rate paid becomes the prevailing wage rate. For example, if one worker receives $14.90 an hour, another is paid $16.75 and another gets $15.35, the prevailing wage is $16.75 an hour.

To obtain the necessary database, the Department of Labor and Industry mails surveys to all segments of the construction industry. The department recognizes 209 job classes common to the construction industry. These classifications are divided into six categories: laborers, special equipment, truck drivers, heavy-type-equipment operators, commercial-type-equipment operators and skilled crafts.

In 2010, more than 20,000 requests for wage rates were mailed to public and private employers throughout the state.

The prevailing wage, as certified by the Department of Labor and Industry, is required by law to be posted in a conspicuous place by each contractor working on a state construction site.

5. How is prevailing wage enforced?

6. How can I file a complaint?