Prevailing-wage FAQS

Prevailing-wage FAQS related to landscaping projects

The frequently asked questions (FAQs) below answer questions often received by the Minnesota Department of Labor and Industry (DLI) related to landscaping and prevailing-wage applicability. These FAQs are not a substitute for review of the applicable laws and rules or contract documents related to state funding and should not be considered comprehensive. They are intended as informational and guidance only and do not have the force or effect of law. DLI cannot provide legal advice or advisory opinions. Grantees, project owners, granting agencies and contractors may wish to consult their legal counsel. 

 

1. How do the changes to the definition of “project” in Minnesota Statutes, section 177.42, subdivision 2 impact landscaping projects?

 

The changes to section 177.42, subdivision 2 clarify the definition of “project” and align with how prevailing wage has been historically interpreted and applied by DLI.  The clarification does not substantively alter the definition of “project” or the application of prevailing-wage requirements.  

 

2. Is work performed in connection with landscape work covered under the Prevailing Wage Act?

 

Work performed in connection with landscape work may be covered work under the Prevailing Wage Act depending upon the nature of the work.

 

3. What established classifications of employees under the Prevailing Wage Act cover those employees who perform landscape work, which falls under the coverage of the Prevailing Wage Act?

 

Workers subject to the Prevailing Wage Act must be compensated according to the work they are actually performing. Common classifications and labor codes for landscape work may include Laborer: Common (101), Laborer: Landscaping (103), Landscaping Equipment (203), and various Power Equipment Operator Codes (codes 302-397). Other classifications and labor codes may apply depending on the work being performed. For more information on classifications and labor codes, see Minnesota Rules parts 5200.1100 to 5200.1102. 

 

4. What are examples of landscape work that is covered under the Prevailing Wage Act when performed in connection with other work covered under the Prevailing Wage Act?

 

All work involving the installation or removal of landscape materials in conjunction with or as part of work which is otherwise covered under the Prevailing Wage Act is also work covered by the Prevailing Wage Act. For example:

1. original installation of landscape materials in connection with covered work involving buildings or structures

2. landscape work in conjunction with covered work involving any road, boulevard, street, highway, bridge project, sewer or underground project

3. lawn and landscape restoration performed in conjunction with covered work involving trenches and manholes, pipes, cables and conduits

4. preparation of and landscaping of approaches associated with covered work performed in connection with shafts, tunnels, and sewers

5. landscaping of an old or new site in conjunction with covered work involving underpinning, lagging, bracing, propping or shoring

6. landscaping in connection with covered work involving earthmoving and grading

 

Even if the landscaping is to be performed after completion of the covered project, if it is an integral part of the overall project, it is deemed to be performed in conjunction with or as part of the project. A single project may not be split into separate phases or contracts to avoid application of the Prevailing Wage Act. 

 

5. Can work associated with landscape work by itself be considered work covered under the Prevailing Wage Act?

 

Landscape work by itself may constitute a public work and be subject to the Prevailing Wage Act when it involves alteration or change in the character, nature or use of land for public use or public benefit. Coverage of landscape work by itself may often be indicated by earthmoving or the rearrangement or repurposing of the terrain.

 

6. What are examples of work associated with landscaping that is not covered work when it is not done in conjunction with or as part of covered work?

Landscape work by itself is not subject to the Prevailing Wage Act when it constitutes maintenance work. The following are examples of work that may be excluded from the Prevailing Wage Act when not performed in conjunction with covered work:

• lawn mowing or grass cutting

• line trimming

• edging

• weeding

• cultivating beds

• mulch application

• bed preparation using soil amendments

• core aeration

• sweeping and blowing of landscape materials

• pruning, planting, removal or replacement of shrubs, plants, and flowers

• pruning of trees and replacement of trees that are planted as a replacement due to the removal of diseased or irreparably damaged trees, or trees that constitute a hazard

• replacement of sod, the removal of diseased or irreparably damaged trees or trees that are a hazard

• seeding, including the preparation and application of erosion control blanket, application of fertilizer, herbicide, pesticide, and fungicide

• aquatic applications, raking, watering of trees, shrubs, plants, flowers, bulbs, seeds and sod

• grooming

• dividing plants

• dead-leafing

• sweeping

• trash pick-up and removal of landscape litter

• snow removal

• prescribed burning

7. Are Conservation Corps workers covered by state prevailing wage requirements?

No, pursuant to Minnesota Statutes, section 84.991, subdivision 2(d), the Conservation Corps program is exempt from state prevailing-wage requirements.

8. If a project is covered by federal and state prevailing-wage requirements, which rate applies?

Requirements of both state and federal law would apply. A contractor is required to pay the rate that is most beneficial to the employee. As of June 7, 2024, the U.S. Department of Labor adopted Minnesota prevailing-wage rates as federal Davis-Bacon rates for most types of projects. This means that federal rates now reflect the labor classifications and prevailing-wage rates adopted in Minnesota. 

Prevailing-wage FAQs related to prevailing-wage exemptions for economic development housing projects

1. If developers with projects all over the state apply for impact funds in one application, will the exemption under Minnesota Statutes § 116J.871, subdivision 1(b)(3), apply?

It depends. If the application is for 10 or fewer fully detached single-family homeownership units then, yes, the exemption will apply and prevailing-wage requirements will not attach. The number of homes must be at 10 or fewer for developers to obtain the exemption under Minn. Stat. § 116J.871, subd. 1(b)(3). The homes must also be “fully detached” with no shared walls to obtain the exemption under Minn. Stat. § 116J.871, subd. 1(b)(3).

 

2. If a developer builds 30 homes in distinct phases, will the exemption under Minn. Stat. §116J.871, subd. 1(b)(3), apply?

 

It depends. If an application for financial assistance is for 10 or fewer fully detached single-family homeownership units then, yes, the exemption will apply and prevailing-wage requirements will not attach. The number of homes must be at 10 or fewer for developers to obtain the exemption under Minn. Stat. § 116J.871, subd. 1(b)(3). If a developer applies for financial assistance in three distinct applications, each application will then be reviewed individually to see if the exemption under Minn. Stat. § 116J.871, subd. 1(b)(3), applies.

 

3. What if a developer submits one application that contains “phase 1” and “phase 2” of a development? The plan is to first build 10 fully detached single-family homeownership units (phase 1) and then build 10 additional fully detached single-family homeownership units in the same development (phase 2). Will the exemption under Minn. Stat. § 116J.871, subd. 1(b)(3), apply?

 

No, because the developer is receiving financial assistance for more than 10 fully detached single-family affordable homeownership units, the prevailing-wage exemption under Minn. Stat. § 116J.871, subd. 1(b)(3), does not apply. If the developer received a separate grant or loan through a separate application and award for the second phase, the exemption under Minn. Stat. § 116J.871, subd. 1(b)(3), would apply.

 

4. A developer submits an application for 10 homes to be built in Willmar, Minnesota. The application indicates the homes are for larger families and will have four bedrooms, two bathrooms and an attached two-car garage. The same application has a request for an additional 10 homes to be built in St. Paul, Minnesota. Homes in St. Paul are for smaller families, will have two bedrooms, one bathroom and a detached one-car garage. Will the exemption under Minn. Stat. § 116J.871, subd. 1(b)(3), apply?

 

No, because the developer is receiving financial assistance for more than 10 fully detached single-family affordable homeownership units, the prevailing-wage exemption under Minn. Stat. § 116J.871, subd. 1(b)(3), does not apply. If the developer received a separate grant or loan through a separate application and award for the 10 homes in St. Paul, the exemption under Minn. Stat. § 116J.871, subd. 1(b)(3), would apply.

 

5. A developer submits an application for 11 homes to be built in Minneapolis, but in different neighborhoods. Homes are to be built simultaneously, each using the same stick build or prefab mode, and marketed to the same group of potential homebuyers. The application request totals $1 million in financial assistance. Will the exemptions under Minn. Stat. § 116J.871, subd. 1(b), apply?

 

No, because the financial assistance being provided is over the threshold and the financial assistance is for more than 10 fully detached single-family affordable homeownership units, the prevailing-wage exemptions under Minn. Stat. § 116J.871, subd. 1(b), do not apply.

 

6. A developer submits an application for four homes to be built next to each other on a street. The garages for homes one and two will share a common wall and the garages for homes three and four will share a common wall. Will the exemption under Minn. Stat. § 116J.871, subd. 1(b)(3), apply?

 

No, although the financial assistance is for 10 or fewer single-family homeownership units, the shared garage wall would not meet the requirement in Minn. Stat. § 116J.871, subd. 1(b)(3), that the homes be “fully detached.”