The law applies to three forms of state financial assistance: • Economic development grants where a single business receives $200,000 or more of the grant proceeds; • Loans made by a state agency for economic development purposes where the loan recipient receives $500,000 or more of the loan proceeds, and • Sales tax reductions or abatements made for economic development purposes in certain geographic areas. Economic development is defined as financial assistance provided to a person directly or to a local unit of government or nonprofit organization on behalf of a person who is engaged in the manufacture or sale of goods and services, except for financial assistance provided for certain housing projects. The law requires the person receiving or benefiting from the financial assistance, as a condition of receiving the assistance, to certify to the Commissioner of Labor and Industry that laborers and mechanics assigned to the project will be paid the prevailing wage rate for the area. The prevailing wage rate is determined periodically by the Department of Labor and Industry. The federal government enforces the Davis-Bacon and related acts, which require the payment of prevailing wage rates and fringe benefits on federally-financed or assisted construction, and the Service Contract Act, which requires the payment of prevailing wage rates and fringe benefits on contracts to provide services to the federal government. The prevailing wage rate is defined as the hourly basic rate of pay plus the employer‘s contribution for health and welfare, vacation, pension, and other economic benefits paid to the largest number of workers engaged in the same class of labor in the area. Area is defined as the county or other locality from which labor for any project normally is secured. Current prevailing wage rates are available on the website of the Minnesota Department of Labor and Industry at Prevailing-Wage Information .
RECORDKEEPING REQUIREMENTS
Federal Recordkeeping Requirements Federal employer recordkeeping requirements are specified by regulation of the U.S. Department of Labor. Most of the information is of the kind generally maintained by employers in ordinary business practice and in compliance with other laws and regulations. The records do not have to be kept in any particular form and time clocks need not be used. The following records must be kept on all employees subject to the minimum wage and overtime provisions of the federal act. The following is a listing of the basic records that an employer must maintain. • Employee’s full name and Social Security number. • Address, including zip code.
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