Prevailing Wages

A Fair Playing Field for All

LIUNA defends prevailing wage laws to ensure public construction projects provide fair, living wages. These standards prevent undercutting, support skilled workers, and strengthen communities by guaranteeing high-quality work and a level playing field for contractors.

LIUNA strongly opposes any effort to weaken or repeal these protections for workers on transportation, water, energy, housing, and other public construction projects funded with taxpayer dollars.

What Are Prevailing Wage Laws?

Prevailing wage laws require that workers on publicly funded construction projects receive wages and benefits comparable to those of similar workers in their local area. These laws create a level playing field where contractors compete on skill, safety, and quality, not by cutting workers' pay.

The federal Davis-Bacon Act, passed in 1931, established this principle nationwide. Minnesota's Prevailing Wage Act provides the same protections at the state level.

Prevailing Wage Protects Workers AND Taxpayers

Despite opponents' claims, research shows that public construction projects that pay prevailing wages do not cost taxpayers more. Instead, contractors compete on a level playing field on skill, safety, and quality, not on who can pay workers the least.

Prevailing wage delivers:

• Reduces workplace injuries through better safety standards
• Ensures high-quality training for skilled construction work
• Prevents wage theft and worker exploitation
• Keeps local workers in good jobs that support families and communities

Public money shouldn't subsidize worker exploitation. Prevailing wage laws protect both workers and taxpayers by ensuring quality construction and fair competition.

Proven Results in Minnesota

According to a 2018 report by the Midwest Economic Policy Institute,  “one policy has helped recruit and retain skilled workers into Minnesota’s construction industry: the Minnesota Prevailing Wage Act."