Prevailing Wages

A Fair Day's Pay for a Fair Day's Work

LIUNA defends and supports expanding prevailing wage protections so all construction workers on publicly funded projects can earn a fair day’s pay for a fair day’s work. These standards ensure a level playing field for contractors and safer, higher-quality construction.

What Are Prevailing Wage Protections?

Prevailing wage protections, also known as Davis-Bacon 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 and local government policies provide the same protections at the state and local 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:

• Reduces workplace injuries through better safety standards
• Ensures high-quality training for skilled construction work
• Prevents wage theft and misclassification fraud
• 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."