The Labor Department has updated federal prevailing wage standards in Minnesota, a move local Building Trades unions hailed as critical to ensuring that the tradespeople working on historic infrastructure investments passed during President Joe Biden’s first term are paid fairly and consistently.
Tom Dicklich, executive director of the Minnesota State Building and Construction Trades Council, called the Wage and Hour Division’s announcement “a tremendous win for the working women and men of Minnesota.”
“The implementation of new prevailing wage standards will provide our workers with the financial security they deserve and ensure that our construction projects are carried out by skilled, fairly compensated professionals,” Dicklich said. “We’re excited to see the tangible benefits this will bring to our communities.”
Under the new standards, the prevailing wage rates applied to federally funded building, highway and heavy construction projects will be the same as the state’s prevailing wage rates.
Minnesota’s prevailing wage rates better reflect the labor costs incurred by responsible contractors, like unions’ signatory contractors, Wage and Hour Division Administrator Jessica Looman said at a press conference May 31 at the St. Paul Labor Center.
Looman, who served as executive director of the Minnesota Building Trades council before accepting a post in the Biden administration, said the change to federal rates here is part of the “most comprehensive review” of prevailing wage standards undertaken at the Labor Department in “more than 40 years.”
“The new prevailing wage standards will ensure that workers on federally funded projects are compensated fairly, reflecting the true value of their labor,” Looman said. “This initiative will help close wage gaps and set a higher standard for transparency and fairness in the construction industry.”
Under the Davis Bacon Act, contractors carrying out most federal building projects are required to pay the local “prevailing wage” – an hourly rate, plus benefits – determined by the Labor Department. Many states and municipalities also have their own prevailing wage standards.
Prevailing wage laws ensure that workers on publicly funded construction projects are paid wages that reflect area standards – and prevent low-road contractors from squeezing workers’ pay in order to win a public bid.
The Wage and Hour Division announcement comes at a time when billions of additional dollars are being invested in Minnesota under two of Biden’s signature legislative achievements, the bipartisan infrastructure law and the CHIPS and Science Act.
Sen. Tina Smith, who joined Looman at the event, said the new prevailing wage standards add to Biden’s record as “the most pro-worker administration” in her lifetime. Smith ran down a list of pro-worker advancements since Biden took office, from expanding eligibility for overtime pay to banning noncompete agreements.

— By Michael Moore, St. Paul Union Advocate