Prevailing wage: Know your rights

All inquiries to the Department of Labor and Industry (DLI) about your rights under state and federal regulations shall be kept confidential.

1. Workers must be classified and compensated for the actual work performed, regardless of the workers' skill level.

2. The prevailing-wage rate consists of two components:  hourly basic rate and fringe benefit rate. Together they equal the total prevailing-wage rate. Workers shall be compensated, at a minimum, a combination of cash and fringe benefits equaling the total prevailing-wage rate for all hours worked on the project.

3. Workers required to work in excess of eight hours a day or 40 hours a week shall be compensated at a rate of 1.5 times the basic hourly rate plus fringe benefits as determined by the federal and/or state government.

4. State prevailing-wage rates shall be posted on the project site. If the rates are not available, contact the project engineer or contracting agency, or call DLI at 651-284-5091.

5. Workers must be notified in writing of any fringe benefits contributed on their behalf. Workers must be entitled to receive the benefit after all eligibility requirements have been met.

6. Credit toward the total prevailing-wage rate for bona fide fringe benefits shall be determined for each worker. Allowable benefits include:  health insurance, pension plans, and holiday, vacation and sick plans.

7. Workers who do not receive fringe benefits shall be compensated at the total prevailing-wage rate for all hours worked on the project.

8. A contractor cannot take deductions from wages for loss, theft, damage or other indebtedness without the worker's written permission (Minnesota Statutes 181.79).

9. If you are charged for travel, mileage, lodging or subsistence pay while working on public works projects, call DLI at 651-284-5091.

10. An apprentice is not subject to the prevailing-wage requirements provided the apprentice is:  registered with the U.S. Department of Labor or Minnesota Department of Labor and Industry; performing the work of his or her trade; and working on the project within the proper ratio guidelines specified in the contractor's apprenticeship agreement.

11. Workers involved in the processing, manufacturing or delivery of materials to a project are not subject to the prevailing-wage requirements. However, exemptions may apply.

12. To ensure proper labor classification and compensation, it is recommended the worker complete a timecard daily. The timecard should include the start and end time, along with the total hours worked in each job classification and a description of the work performed. Workers should keep a daily work journal or use the federal smartphone app.

13. Pursuant to Minnesota Statutes 177.27, subd. 8, an employee may bring a civil action against their employer for failure to comply with the requirements under the state prevailing-wage law.

Note:  This is a brief summary of state prevailing-wage law; it is intended as a guide, not a substitute for actual law.

Important phone numbers

Minnesota

Department of Administration:  651-296-2600

Department of Labor and Industry (DLI):  651-284-5005 or 800-342-5354

• DLI – Apprenticeship:  651-284-5090 or 800-342-5354

• DLI – Minnesota OSHA Compliance:  651-284-5050 or 800-470-6742

• DLI – Workers' Compensation Division:  651-284-5018 or 800-342-5354

United States

Department of Labor:  612-370-3371 or 866-487-2365

• Fringe benefits:  866-444-3272

More information

If a worker suspects he or she has been underpaid or has additional prevailing-wage questions, contact us at dli.prevwage@state.mn.us or 612-284-5091.