1.1                          A bill for an act
  1.2             relating to employment; modifying provisions relating 
  1.3             to prevailing wages; amending Minnesota Statutes 1994, 
  1.4             sections 177.42, subdivisions 4 and 6; 177.43, 
  1.5             subdivisions 1 and 3; and 471.345, subdivision 7; 
  1.6             proposing coding for new law in Minnesota Statutes, 
  1.7             chapter 177. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 177.42, 
  1.10  subdivision 4, is amended to read: 
  1.11     Subd. 4.  [PREVAILING HOURS OF LABOR.] "Prevailing hours of 
  1.12  labor" means the median number of hours of labor per day and per 
  1.13  week worked within the area by a larger number of workers of the 
  1.14  same class than are employed within the area for any other 
  1.15  number of hours per day and per week.  The prevailing hours of 
  1.16  labor may not be more than eight hours per day or more than 40 
  1.17  hours per week.  
  1.18     Sec. 2.  Minnesota Statutes 1994, section 177.42, 
  1.19  subdivision 6, is amended to read: 
  1.20     Subd. 6.  [PREVAILING WAGE RATE.] "Prevailing wage rate" 
  1.21  means the hourly basic rate of pay plus the contribution for 
  1.22  health and welfare benefits, vacation benefits, pension 
  1.23  benefits, and any other economic benefit paid to the largest 
  1.24  number of median hourly compensation paid to workers engaged in 
  1.25  the same class of labor within the area and includes, for the 
  1.26  purposes of section 177.44, rental rates for truck hire paid to 
  2.1   those who own and operate the truck.  The median hourly 
  2.2   compensation includes the hourly basic rate plus the 
  2.3   contribution for health and welfare benefits, vacation benefits, 
  2.4   pension benefits, and any other economic benefit.  The 
  2.5   prevailing wage rate may not be less than a reasonable and 
  2.6   living wage.  All economic benefits paid to or dedicated for the 
  2.7   benefit of workers engaged in the same class of labor, whether 
  2.8   pursuant to a qualified or other formal benefit plan, or paid or 
  2.9   dedicated by the employer for the benefit of the worker in any 
  2.10  other manner must be included in the median hourly compensation 
  2.11  for the purposes of sections 177.41 to 177.44.  
  2.12     Sec. 3.  Minnesota Statutes 1994, section 177.43, 
  2.13  subdivision 1, is amended to read: 
  2.14     Subdivision 1.  [HOURS OF LABOR.] Any contract which 
  2.15  provides for a project must state that:  
  2.16     (1) no laborer or mechanic employed directly on the project 
  2.17  work site by the contractor or any subcontractor, agent, or 
  2.18  other person doing or contracting to do all or a part of the 
  2.19  work of the project, is permitted or required to work more hours 
  2.20  than the prevailing hours of labor unless paid for all hours in 
  2.21  excess of the prevailing hours at a rate of at least 1-1/2 times 
  2.22  the hourly basic rate of pay, provided that the rate is only 
  2.23  paid on hours actually worked in excess of 40 per week; and 
  2.24     (2) a laborer or mechanic may not be paid a lesser rate of 
  2.25  wages than the prevailing wage rate in the same or most similar 
  2.26  trade or occupation in the area.  
  2.27     Sec. 4.  Minnesota Statutes 1994, section 177.43, 
  2.28  subdivision 3, is amended to read: 
  2.29     Subd. 3.  [SPECIFICATION, REQUEST FOR PROPOSAL, AND 
  2.30  CONTRACT REQUIREMENTS.] The specification or request for 
  2.31  proposal and the contract must specifically state the prevailing 
  2.32  wage rates, prevailing hours of labor, and hourly basic rates of 
  2.33  pay.  No prevailing wage rate is required to be paid if the 
  2.34  prevailing wage rate has not been expressly included in the 
  2.35  specification or request for proposal and in the contract 
  2.36  pertaining to the project on which the prevailing wage rate is 
  3.1   sought to be paid.  A prevailing wage rate provided in a 
  3.2   specification or request for proposal and in the contract must 
  3.3   be applicable for the duration of the contract or the project 
  3.4   covered by the contract, whichever is greater, irrespective of 
  3.5   any change in the rate for the same class of labor affecting 
  3.6   other contracts or projects. 
  3.7      Sec. 5.  [177.431] [SURVEY REQUIREMENTS.] 
  3.8      The prevailing wage rate may be determined for an area only 
  3.9   if wage rates are reported for nonpublic work in the class of 
  3.10  labor during the survey period.  No prevailing wage rate may be 
  3.11  determined by use of data from adjoining areas or by use of data 
  3.12  from any source other than that of an employer of workers 
  3.13  actually performing work in the class in the area during the 
  3.14  survey period. 
  3.15     Sec. 6.  [177.432] [NONAPPLICATION TO INDEPENDENT 
  3.16  CONTRACTOR.] 
  3.17     Prevailing wage rates are not required to be paid to any 
  3.18  provider of services who is signatory to an independent 
  3.19  contractor agreement unless the person has been finally 
  3.20  determined, after an evidentiary hearing, to be an employee 
  3.21  rather than an independent contractor under the rules for 
  3.22  determination of employee and independent contractor status of 
  3.23  the United States Internal Revenue Service. 
  3.24     Sec. 7.  [177.433] [METHOD OF COLLECTION OF SURVEY DATA.] 
  3.25     The commissioner of the department of economic security 
  3.26  shall require that all employers of construction workers provide 
  3.27  quarterly wage reports under section 268.121 in a form which 
  3.28  details the wages paid to each class of construction labor by 
  3.29  individual project, county in which the work is performed, class 
  3.30  of labor by individual employee, hours of labor, and the total 
  3.31  cost or value of all economic benefits paid ancillary to wage 
  3.32  payments.  The economic benefits may not be deemed to be subject 
  3.33  to the payment of unemployment compensation contributions.  The 
  3.34  information required in this section shall be reported to the 
  3.35  commissioner of labor and industry for the purpose of 
  3.36  determining the prevailing wage rate under sections 177.43, 
  4.1   subdivision 4, and 177.44, subdivision 4. 
  4.2      Sec. 8.  Minnesota Statutes 1994, section 471.345, 
  4.3   subdivision 7, is amended to read: 
  4.4      Subd. 7.  [MINIMUM LABOR STANDARDS.] Nothing in this 
  4.5   section shall be construed to prohibit any municipality from 
  4.6   adopting rules, regulations, or ordinances which establish the 
  4.7   prevailing wage rate as defined in section 177.42, as a minimum 
  4.8   standard for wages and which establish the hours and working 
  4.9   conditions prevailing for the largest number of workers engaged 
  4.10  in the same class of labor within the area as a minimum standard 
  4.11  for a contractor's employees which must be agreed to by any 
  4.12  contractor before the contractor may be awarded any contract for 
  4.13  the furnishing of any labor, material, supplies, or service.