Minnesota certified payroll: the DLI form, MnDOT reports, and jobs with federal money

Minnesota certified payroll goes to the agency that holds the contract. On state highway work that is MnDOT. On a state-funded school, city project or grant-funded building, it is the contracting authority named in your contract.

The law and what it covers

The Minnesota Prevailing Wage Act is Minn. Stat. 177.41 to 177.44. A "project" under 177.42 is demolition, construction, alteration, remodeling, repair and similar work on a public building, facility, land or other public work "financed in whole or part by state funds." It also reaches a project when its acquisition, predesign, design or demolition is state funded. DLI lists highways, wastewater plants, utilities, schools, colleges and park improvements as examples, and says state grants and loans to cities or private businesses count as state dollars.

Section 177.43 doesn't apply when:

• the estimated total cost is less than $2,500 and only 1 trade is needed, or
• the estimated total cost is less than $25,000 and more than 1 trade is needed.

State highway contracts fall under 177.44, which MnDOT enforces. The Department of Labor and Industry (DLI) enforces 177.43 on everything else and sets the certified wage rates: commercial rates by county, highway and heavy rates by region.

How certified payroll is submitted

To whom. The contracting authority, meaning the state agency, city, county or other body that holds the contract. Minn. Stat. 177.30 also names the project owner, so on a grant-funded job the owner may want a copy. DLI can also demand copies of any or all payrolls.

How often. The contract has to require payrolls "not more than 14 days after the end of each pay period." Section 177.30 says the report is furnished every 2 weeks, under oath, signed by an owner or officer of the company. That signer rule is narrower than the federal one, which lets a payroll agent sign.

MnDOT. MnDOT's labor compliance unit wants the report within 14 days after the employee is paid on state-only contracts, with workers paid at least every 14 days. You can file on paper (MnDOT's payroll report plus its statement of compliance) or enter payroll electronically in MnDOT's AASHTOWare Civil Rights and Labor system. That system imports XML, and MnDOT supplies a payroll spreadsheet and a tool that converts it to XML. Electronic access needs vendor registration and a notarized user account form. The prime collects reports from first- and second-tier subs and checks each sub's first 2 reports closely.

The form. DLI's certified payroll form is 2 forms in one: the payroll and a statement of compliance, which must be attached to every report. Payrolls are numbered weekly starting at 1, and the last is marked "final." DLI says its form "can be used" to meet the requirement. MnDOT says you may use your own payroll report "as long as it contains all required information."

No-work weeks. DLI's instructions say that if no work was performed, you submit a form stating that no employees worked that week.

Late or missing. On MnDOT jobs the project engineer can hold back part of the partial estimates until reports arrive. DLI can fine up to $1,000 for each failure to keep the required records and up to $5,000 for each repeated failure.

Worker data beyond the WH-347

The DLI form and 177.30 ask for things the federal WH-347 doesn't:

• Worker address. Column 1 of the DLI form asks for each employee's name, address and an identifying number. The form says not to use a Social Security number.
• State labor code. The 3-digit code and job title from the state wage determination, with apprentices marked "app."
• Daily overtime. The form's straight time and overtime rows follow the state rule, so a 10-hour day shows 2 overtime hours even in a 40-hour week.
• Plan details. For each fringe plan, the administrator's full name and address, the account number, a contact person and a phone number.
• Workers without fringe. Part 4(c) of the statement lists anyone who received no fringe benefits; those workers must get the full certified rate in wages.

DLI's form notes that the data is public under the Minnesota Government Data Practices Act.

Other state rules that affect payroll

Overtime. Section 177.42 caps the prevailing hours of labor at 8 a day and 40 a week. Hours past those on the project are paid at least 1.5 times the hourly basic rate. MnDOT's formula is 1.5 times the basic rate plus the fringe rate once, and MnDOT says state and federal overtime rules apply together. Overtime on prevailing wage jobs.

Apprentices. Only apprentices registered with DLI or the U.S. Department of Labor in a bona fide program can be paid the program rate. DLI says titles like trainee, laborer or unskilled worker can't be used in place of "apprentice." Where the agreement sets no ratio, MnDOT's page gives 1 apprentice for the first journeyworker and 1 more for each additional 3. An apprentice outside those rules gets the full prevailing rate.

Records. On state-funded public works, keep payroll records for 3 years after the contracting authority makes final payment.

Jobs with federal money

When a project has both state and federal money, both laws apply. DLI tells agencies that the laws and rates aren't identical and to watch for both. MnDOT enforces the higher total rate (base plus fringe) of the state and federal determinations for each classification.

The federal schedule is tighter. On MnDOT contracts funded in whole or in part with federal funds, workers are paid weekly and the report is due within 7 days after they're paid. The weekly WH-347 and its Statement of Compliance follow the federal rules, including no addresses or full Social Security numbers. How the state systems compare.

What CertifiedHours does here

CertifiedHours produces the federal WH-347, plus an LCPtracker upload file and a CSV, for federally funded work in Minnesota. It does not produce DLI's certified payroll form or MnDOT's payroll report and statement of compliance, and it does not collect home addresses or full Social Security numbers. For state-funded work, use DLI's form or MnDOT's report, or enter the payroll in MnDOT's system.