At a Glance
Quick Answer
Minnesota has an active prevailing wage law (Minnesota Prevailing Wage Act (Minnesota Statutes 177.41-177.44)). Administered by Minnesota Department of Labor and Industry. Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
Minnesota's prevailing wage law applies to state-funded construction projects with costs of $25,000 or more (multiple trades) or $2,500 or more (single trade). Rates are set based on local wage data and updated periodically.
Context
Prevailing Wage & Bidding in Minnesota
Minnesota's Prevailing Wage Act (Statutes 177.41-177.44), administered by the Department of Labor and Industry (DLI), uses a two-tier threshold that bidders must apply carefully. State-funded construction is covered at $25,000 or more when the project involves more than one trade, but the trigger drops to just $2,500 or more for single-trade projects. That low single-trade figure means specialty contractors — a roofer, painter, or electrician handling a standalone scope — can be covered on jobs that a general contractor might assume are too small. Identify your project's trade mix before bidding so you apply the correct threshold and the correct rates.
When coverage applies, price labor to DLI's prevailing rates, which are built from local wage data, and classify each worker to the proper trade. Build certified-payroll reporting into your overhead, and note that Minnesota Housing projects operate under separate thresholds — $500,000 for loans and $200,000 for grants — so affordable-housing bidders should verify which standard governs rather than defaulting to the general construction figures. Confirm the funding source as well, since state funding is what brings a project under the Act.
The compliance stakes warrant a disciplined bid. Violations can mean back-wage payments, civil penalties, and potential debarment from public contracts, and willful violations may be referred for criminal prosecution. As one of the oldest continuously active prevailing wage laws in the Midwest, Minnesota's program is well-established and actively enforced — auditors know the classifications. On federally funded work, Davis-Bacon may also apply, and you must follow the more stringent of the two. The reliable approach: determine trade count and funding, pull the right rate schedule and threshold, and treat prevailing wages and certified payroll as fixed costs across both your own crews and your subcontractors.
Details
Coverage Details
State Law Details
- Law
- Minnesota Prevailing Wage Act (Minnesota Statutes 177.41-177.44)
- Agency
- Minnesota Department of Labor and Industry
- Thresholds
- $25,000 or more for projects involving multiple trades$2,500 or more for projects involving a single trade
- Certified Payroll
- Required
Federal Davis-Bacon Coverage
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in Minnesota. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
Threshold: $25,000+ (multiple trades) or $2,500+ (single trade)
Rates are based on local wage data collected by DLI
Covers construction, renovation, and maintenance of public works
Minnesota Housing projects have separate thresholds ($500,000 loans / $200,000 grants)
One of the oldest continuously active prevailing wage laws in the Midwest
Enforcement
Penalties
Contractors face payment of back wages, civil penalties, and potential debarment from public contracts. Willful violations may result in criminal prosecution.
Resources
Related Tools & Templates
Turn wage rules into bid-ready alerts
Use ConstructionBids.ai to track matching public projects, save bid searches, and move wage-sensitive scopes into your estimating workflow.
FAQ
Questions Contractors Ask
Does Minnesota have a prevailing wage law?
Yes. Minnesota has an active state prevailing wage law: Minnesota Prevailing Wage Act (Minnesota Statutes 177.41-177.44). Minnesota's prevailing wage law applies to state-funded construction projects with costs of $25,000 or more (multiple trades) or $2,500 or more (single trade). Rates are set based on local wage data and updated periodically.
Does Davis-Bacon apply in Minnesota?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in Minnesota, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in Minnesota?
Yes. Minnesota requires certified payroll on state prevailing wage projects. Additionally, certified payroll is always required on federal Davis-Bacon projects using form WH-347.
What are the penalties for prevailing wage violations in Minnesota?
Contractors face payment of back wages, civil penalties, and potential debarment from public contracts. Willful violations may result in criminal prosecution.
What are Minnesota's prevailing wage thresholds?
Minnesota uses two tiers. State-funded projects involving multiple trades are covered at $25,000 or more, but single-trade projects are covered at just $2,500 or more. This low single-trade figure means specialty contractors can be subject to prevailing wage on relatively small standalone jobs.
Do different rules apply to Minnesota Housing projects?
Yes. Minnesota Housing projects operate under separate thresholds — $500,000 for loans and $200,000 for grants — rather than the general $25,000/$2,500 construction figures. Affordable-housing bidders should confirm which standard governs their specific project before pricing the labor line.
How are Minnesota prevailing wage rates determined and enforced?
The Department of Labor and Industry sets rates from local wage data and enforces compliance. Violations can bring back wages, civil penalties, and debarment from public contracts, while willful violations may be referred for criminal prosecution under one of the Midwest's oldest active prevailing wage laws.