A Guide To STARTING A BUSINESS IN MINNESOTA 44th Ed 2026

The business or project sponsor receiving or benefiting from the state assistance must, as a condition of assistance, certify to the Minnesota Department of Labor and Industry (DLI) that laborers and mechanics on the project will be paid at least the applicable state prevailing wage. DLI determines and publishes prevailing wage rates through annual contractor surveys and enforces compliance, including back‑wage assessments and penalties for violations.​ Federal Davis‑Bacon and Minnesota coordination For federally financed or assisted construction, the U.S. Department of Labor enforces: • The Davis‑Bacon and Related Acts (DBRA) – prevailing wages and fringe benefits on many federal and federally assisted construction projects; and • The Service Contract Act (SCA ) – prevailing wages on certain service contracts for federal agencies.​ As of 2024, the U.S. DOL has adopted Minnesota’s state prevailing wage rates as Davis‑Bacon rates for most types of projects in Minnesota, meaning that in many cases a single wage determination will satisfy both state and federal prevailing wage requirements, though contractors still must comply with both sets of rules and any project‑specific conditions.​ Accessing current Minnesota prevailing wage rates Because prevailing wage classifications and rates are updated periodically, your Guide should direct readers to DLI rather than quoting specific numbers. Contractors, developers, and assisted businesses can obtain current Minnesota prevailing wage rates and related instructions at: • Minnesota DLI – Prevailing‑wage information (highway, heavy, and building rates; FAQs; how rates are determined; enforcement).​ For economic development projects, it is also helpful to note DLI’s guidance that: • State financial assistance is considered in the aggregate (modifications that push a grant or loan at or over the $200,000 / $500,000 thresholds can trigger prevailing wage); and • Recipients must incorporate prevailing wage requirements into bid documents and contracts and communicate applicable rates to contractors in writing before bids are submitted.

RECORDKEEPING REQUIREMENTS Federal Recordkeeping Requirements

Federal recordkeeping requirements under the FLSA are set by U.S. Department of Labor regulations. Employers do not have to use any particular format or timekeeping system, but they must maintain specific information for all non exempt employees covered by federal minimum wage and overtime rules. For each covered employee, basic records must include: • Full name and Social Security number. • Home address, including ZIP code.

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