Key labor standards information for Minnesota's construction industry
As construction activity ramps up across Minnesota, April is an ideal time for employers and employees to review key labor standards. This month's bulletin highlights important labor standards issues in the construction industry, including prevailing wages and worker classification.
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Prevailing wages: What to know this construction season
The prevailing wage is the minimum hourly wage employers must pay certain workers who work on construction and public works projects funded with state dollars. The prevailing wage includes the employer's cost of benefits. In addition:
- The Department of Labor and Industry (DLI) sets the prevailing-wage rates based on wages paid for similar work in the county or region where the project is located.
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An annual statewide survey determines prevailing-wage rates. The current prevailing-wage survey ends June 5, 2026.
- Employers working on projects where prevailing wage applies must submit certified payroll reports.
- If an employer pays less than the prevailing wage, DLI requires payment of back-wages to workers and may assess damages and penalties for failing to comply with the law.
For additional information, videos and FAQs visit dli.mn.gov/prevailing-wage.
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Register to attend our prevailing-wage webinar, "Prevailing wage on public projects: What contractors and employers need to know," April 22, from 10-11 a.m.
Worker classification: Getting it right
Misclassifying employees as independent contractors remains a common and problematic issue in construction and other industries.
What is worker misclassification?
Misclassification occurs when an employer classifies, represents or treats a worker who is an employee under the law as an independent contractor or fails to classify, represent or treat an employee as an employee.
Considerations when classifying a worker
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State law and rules establish factor and element tests to determine worker classification.
- Employers that misclassify workers as independent contractors may face penalties and owe back-wages and other compensatory damages, regardless of intent.
- DLI and other state agencies provide resources and FAQs to help employers and employees understand worker classification requirements.
More information
- Watch a video in Englishor Spanish about misclassification in the construction industry.
- Watch a video in English about misclassification in non-construction industries.
- Attend our April 15 webinar, "Employee or independent contractor? Understanding worker misclassification." Register for the webinar.
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Packinghouse Workers Bill of Rights
Minnesota's Packinghouse Workers Bill of Rights requires meatpacking and poultry processing employers to provide workers with a clear explanation -- in the worker's native language -- of their position, pay, benefits, work hours, leave policies, hazards and workers' compensation at the start of their employment.
The explanation must also inform workers of their rights to organize, work safely, be free from discrimination and access workers' compensation insurance. Violations can result in penalties. DLI offers a sample explanation form in 12 languages and can translate the form into additional languages upon request.
The Safe Workplaces for Meat and Poultry Processing Act and the Recruitment in Food Processing law provide additional protections for workers in the meatpacking and poultry processing industries.
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May webinars
April featured case
This month's featured case involves an employee who was terminated from their job and filed a wage claim with the Labor Standards Division for $19,117 in unpaid wages. The employee also reported a 50% wage reduction made verbally about six months before termination.
Because the employer did not issue a new written wage notice reflecting this reduction as required under Minnesota Statutes 181.032, wages were recalculated using the employee's prior higher rate. This increased the total amount owed to $51,843.76.
The employer, which was unaware of the written notice requirements, paid the full amount and committed to issuing written wage notices at the start of employment and for all future wage changes.
Questions of the month
How do I file a complaint about an employer I believe is paying less than the prevailing wage?
To file a prevailing-wage complaint, contact the Prevailing Wage unit at 651-284-5091 or dli.prevwage@state.mn.us.
Wage and Hour Bulletin archive
Access past editions of the Wage and Hour Bulletin.
Questions?
Labor Standards serves the people of Minnesota by providing information about the state's wage, hour and employment laws.
Phone: 651-284-5075 or 800-342-5354 Email: dli.laborstandards@state.mn.us Website: dli.mn.gov
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