Prevailing wage
On June 17, 2024, the Bloomington City Council passed a local prevailing wage ordinance affecting certain city-funded construction projects. The ordinance requires that employees working on city-funded construction projects be paid wage-rates that are comparable to wages paid for similar work in the area where the project is located. This ordinance is effective as of June 27, 2024.
General info
- The requirements of the ordinance apply to contracts that are executed once the Ordinance is effective (June 27, 2024).
- Prevailing wages must be paid on city funded construction projects when the estimated cost of the Project exceeds $175,000.
- What is a “Project”?
- PROJECT(S) means any construction work, demolition work, or repair work on any roads, bridges, sewers, streets, alleys, parks, parkways, buildings, removal of public nuisances or any other improvement of public or private property where (a) the Project is financed in whole or in part with City Funds and (b) the estimated cost of the Project exceeds $175,000.
- Who is included in the definition of “City”?
- CITY means the City of Bloomington, the Housing and Redevelopment Authority in and for the City of Bloomington, and the Port Authority of the City of Bloomington
- What is included in the definition of “City Funds”?
- CITY FUNDS means contract payments, grants, loans, loan guarantees, tax increment financing, tax abatements, tax credits, lease payments, loan payments, contract for deed payments, revenue from bonds, or any other financial assistance.
- While the default prevailing wage rate is that set by the Minnesota Department of Labor and Industry, if a project is also receiving Federal money, then the wage rate will be the higher of the two.
- Prevailing wage may already be required for existing contracts when it has been a pass-through requirement of the funder (i.e., some federal and state construction projects).
Notice (Section 23.32(c))
Contract Requirements (Section 23.33)
- Prevailing Wage Rates from the Minnesota Department of Labor
- Prior to the adoption of the Ordinance, the City indicated the potential for a prevailing wage ordinance in bid documents so bidders were put on notice of the potential for a prevailing wage ordinance.
Monitoring and Compliance (Section 23.34)
- Certified payroll records should be submitted to prevailingwage@bloomingtonmn.gov.
- The City is in the process of implementing an online portal for the submission of payroll records.
- The City’s Compliance Officer is Amir Malik, Compliance Manager.
Documents
- Contractor profile form
- Contractor profile form (fillable PDF)
Prime contractor prevailing wage responsibility
You must:
- Be responsible for all subcontractor compliance with the requirements for prevailing wage. The term subcontractor includes any company with which you or one of your subcontractors enter into a contractual agreement to work on the project. Prevailing wage agreement language must be incorporated into all contracts with subcontractors.
- Inform all subcontractors of the requirement to pay prevailing wages prior to the commencement of the project.
- Ensure all workers, including workers of your subcontractors, are paid prevailing wages.
- Pay the updated rates as required if wage rates are updated after the submission of bids but before the execution of the agreement. The contractor will not be entitled to any additional compensation for adjustments in wage rates.
- Make sure contractor and subcontractor biweekly certified payroll records are submitted via LCPtracker (LCPtracker) to the Compliance Division.
- Ensure all workers receive overtime pay for working more than 8 hours daily.
- Ensure workers are getting paid on a biweekly basis (weekly for federally funded projects).
- Display the applicable prevailing wage decision and labor compliance posters in a highly visible area at the project site.
- Ensure that contractor and subcontractor identification are current.
- Submit a contractor/subcontractor profile form for all contractors/subcontractors performing work on-site.
- Provide proof that apprentices are registered in approved programs.
- Allow City compliance officers access to conduct on-site employee interviews.
- Maintain 3 years of payroll records and allow City compliance officers access to them.
*Failure to comply with prevailing wage requirements may result in fines, agreement suspension, or termination. The contractor may also be liable for any additional costs incurred due to non-compliance. Any disputes regarding prevailing wage compliance should be promptly addressed in accordance with the procedures outlined in the agreement.
*Please submit compliance questions to prevailingwage@bloomingtonmn.gov or call 952-563-8753.
To All Contractors/Subcontractors working on Prevailing Wage Projects:
Effective June 24, 2024, each contractor and every lower-tier subcontractor will be required to submit certified payrolls and labor compliance documentation electronically on Prevailing Wage projects.
LCP Tracker electronic payroll
Electronic payroll submittals will occur via a web-based system, accessed by web/internet browser. Each contractor and subcontractor will be given a User ID and password to access the LCPtracker system.
Again, this requirement will ‘flow down’ to every lower-tier subcontractor and vendor required to provide labor compliance documentation for this project.
The City of Bloomington holds the licensing agreement with LCPtracker, and the use of their system will be free and be offered at no expense to our contractors and subcontractors.
Use of the system will involve data entry of weekly payroll information. Including: employee identification, labor classification, total hours-worked, hours-worked on this project, wage and benefit rates paid, etc. LCPtracker’s software can interface with many payroll and accounting software programs that can generate an excel file for upload as well.
Why LCP Tracker is good for you
- Fills in all required fields on payroll - no more missing info.
- Crafts/classifications are standardized, much easier to identify
- Allows you to avoid inadvertent mathematical errors
- Immediately confirms that correct prevailing wage rates are being paid.
Why LCP Tracker is good for the City of Bloomington
- Uniformity of Certified Payroll Reports
- System performs multiple checks of payroll reports prior to submission.
- Back-Up Documents can be stored in the system.
- Subcontractor Management is simplified using the reports created by the system.
- Internal and Department of Labor audits become easier.
LCP Tracker training
To get started, the City of Bloomington will set you up within LCPtracker and your company will receive an email with a USER ID and temporary password. Once your company has been assigned to a project you will get a 2nd email advising that you have been assigned to a project.
As a contractor, you will need to ensure that all your lower tier subcontractors are set up in LCPtracker as well. Once enrolled, your lower tier subcontractors will also receive a User ID and password via email from LCPtracker.
Once you (and any relevant subs) are setup, LCPtracker provides two (2) free, convenient training options:
- Live contractor training via Microsoft Teams: For this project, the date of the live session of contractor training is TBD.
- On-demand contractor training via Webinar: If you were not able to attend the special live training session, there is another option available for you (and your Subcontractors) free-of-charge, anytime, anywhere. All you need to participate is a computer with Internet access and an email address.
- Log in to your LCPtracker account
Click the yellow 'Training Materials" button at the top of the screen.
- Click ‘Contractors’ under the Webinars section
- Click 'Watch Now' and follow the instructions to view the webinar.
There are other webinars available 24/7, free-of-charge
Questions for uploading employee payroll export files
For questions on uploading employee payroll export files into LCPtracker, please contact support at 714-669-0052 option 4 or email support at support@lcptracker.com
We sincerely thank you for your support during this transition. We are confident that LCPtracker will be instrumental in streamlining our certified payroll process.