Prevailing wage

You must pay the prevailing wage if you want to get a City construction contract for more than $50,000.

Overview

The prevailing wage is the standard hourly rate for performing a certain type of work in a certain geographic area.

The City's prevailing wage ordinance applies to City construction projects:

  • That are greater than or equal to $50,000, and
  • Where the City directly contracts with a general contractor for public improvements.

It may not cover development projects where the City enters into a development agreement. 

Construction worker wearing a hardhat at a construction site.

Details

Topics

Compliance guidelines

  • If a bid, RFP, best value solicitation or contract includes:
    • Federal fair labor standards
    • Prevailing wage provisions
  • All contractors and subcontractors must comply.

Non-compliance

  • Failure to pay the prevailing wage may lead to suspension or debarment.
  • We give contractors due process before making a non-compliance decision.

Employee and contractor pay

General contractors must:

  • Pay employees every two weeks. Failure to comply will result in withholding of payment to general contractor.
  • If project has federal funding, employees must be paid weekly.
  • Pay overtime for every hour an employee works over 40 hours. Overtime pay is 1.5 times the prevailing wage base rate plus normal fringe benefits.

Apprentice pay

You can pay approved apprentices according to their program scale if they provide the following program documents:
  • An approved agreement in a state registered apprentice program.

  • A pay/benefit scale

You must pay the apprentice the full prevailing wage for their classification, regardless of skill level if:

  • They cannot provide program documents
  • Are working outside the approved ratio

Work site requirements

General contractors must post these items in safe, visible location on the project construction site. 

These include:

  • The project’s prevailing wage decision
  • Additional wage classifications
  • Davis-Bacon poster
  • Non-Discrimination poster 

Download the Davis-Bacon poster

Download the Non-Discrimination poster 

Reporting requirements

General contractors need to:

  • Submit a pre-construction booklet for review.
    • Include a profile form for each subcontractor and supplier on your project.
  • Prove that workers classified as independent contractors or subcontractors meet the proper criteria.
  • Submit bi-weekly Certified Payroll Reports (CPRs) for:
    • All employees
    • All subcontractors
  • Keep payroll records for at least one year after you complete the project.

Use the contractor compliance checklist 

View the city prevailing wage fact sheet 

See contract compliance reporting tools

 

City oversight

Our Civil Rights staff will oversee your project to ensure compliance. We will:

  • Visit job sites to:
    • Verify the accuracy of contractor-submitted information.
    • Interview contractor employees.
  • Audit contractors’ books and records to check for compliance, if needed.

Contact us

Johnnie Burns

Associate Director

Contract Compliance Division

Phone

612-673-3012

Address

City Hall
350 Fifth St. S.
Room 239
Minneapolis, MN 55415

Office hours
8:30 a.m. – 4:30 p.m.
Monday – Friday