Skilled and trained contractor workforce requirements

Effective for contracts entered into, extended or renewed on or after Jan. 1, 2024, Minnesota law will require an owner or operator of a petroleum refinery to require contractors and subcontractors of any tier to use a skilled and trained workforce for the performance of construction, alteration, demolition, installation, repair, maintenance or hazardous material handling work at the site of the petroleum refinery. Existing contracts entered into before Jan. 1, 2024, must be renegotiated to comply by Jan. 1, 2025.

A skilled and trained workforce means each employee of the contractor or subcontractor of any tier performing work at the site of the petroleum refinery in an apprenticeable occupation in the building and construction trades meets one of the following criteria:

• is currently registered as an apprentice in a registered apprenticeship program in the applicable trade; 

• graduated from a registered apprenticeship program in the applicable trade; 

• completed all of the related instruction and on-the-job learning requirements needed to graduate from the registered apprenticeship program their employer participates in; or

• has at least five years of experience working in the applicable trade and is participating in journeyworker upgrade training or has completed training identified as necessary by the registered apprenticeship program to become a qualified journeyworker in the applicable trade.

The contractor or subcontractor’s workforce must meet the skilled and trained workforce requirements according to the following schedule:

• 30% by Jan. 1, 2024;

• 45% by Jan. 1, 2025; and

• 60% by Jan. 1, 2026.

The law provides certain exceptions to the skilled and trained workforce requirements. The requirements do not apply:

• to the employees of the owner or operator of a petroleum refinery;

• when an owner or operator contracts with contractors or subcontractors hired to install original equipment manufacturer (OEM) equipment and to perform OEM work to comply with equipment warranty requirements;

• if under a collective bargaining agreement the labor organization is unable to refer sufficient workers for the contractor to comply with the applicable percentage within 48 hours of the contractor’s request, provided the contractor complies once the labor organization is able to refer sufficient workers;

• if an emergency makes compliance impracticable for the contractor because the emergency requires immediate action to prevent harm to public health or safety or to the environment, though the requirements apply once the emergency ends or it becomes practicable for the contractor to obtain a skilled and trained workforce, whichever occurs sooner; and

• if the owner or operator has entered into a project labor agreement with a council of building trades labor organizations requiring participation in registered apprenticeship programs, or all contractors and subcontractors of any tier have entered into collective bargaining agreements with labor organizations requiring participation in registered apprenticeship programs, and all contracted work at the petroleum refinery requiring compliance with this law is also subject to the project labor agreement or collective bargaining agreements requiring participation in registered apprenticeship programs.

The Minnesota Department of Labor and Industry's (DLI) Division of Labor Standards shall receive complaints of violations and must fine an owner or operator, contractor or subcontractor of any tier not less than $5,000 and not more than $10,000 for each violation. Each shift on which a violation occurs is considered a separate violation. Owners or operators shall be found in violation and subject to fines and other penalties for failing to require a skilled and trained workforce in its contracts and subcontracts or failing to enforce the requirement of use of a skilled and trained workforce. Contractors or subcontractors shall be found in violation and subject to fines and other penalties for failure to use a skilled and trained workforce.

Frequently asked questions

Do the petroleum refinery owner or operator’s employees need to meet the skilled and trained workforce requirements?

No. The requirements do not apply to the employees of the owner or operator of a petroleum refinery. 

How do I register an apprenticeship program in Minnesota? 

Contact DLI's Division of Apprenticeship at dli.apprenticeship@state.mn.us, 651-284-5090 or 1-800-342-5354. Visit ApprenticeshipMN.com. An Apprenticeship Minnesota representative will meet with you to assist in development.

If I have an apprenticeship program registered in another state, do I also need to register an apprenticeship program in Minnesota?

No. An apprenticeship program can be registered with DLI, the United States Department of Labor (USDOL) Office of Apprenticeship, or a recognized state apprenticeship agency.

What supervision requirements exist for apprentices on the worksite?

Employers must comply with the journeyworker to apprentice ratio requirements in the standards of apprenticeship for which the apprentice has an apprenticeship agreement.

If I registered apprentices in another state, do they need to meet ratio requirements for the applicable trade in Minnesota, or would the requirements in their apprenticeship agreement apply while working in Minnesota?

Employers must comply with the journeyworker to apprentice ratio requirements in the standards of apprenticeship for which the apprentice has an apprenticeship agreement.

What is an apprenticeable occupation in the building and construction trades?

An apprenticeable occupation is any trade, form of employment, or apprenticeable occupation in the building and construction trades approved by the commissioner of DLI or the United States secretary of labor. Specifically, an apprenticeable occupation is one that meets the criteria in Code of Federal Regulations, title 29, part 29, section 29.4 and must:

1. involve skills that are customarily learned in a practical way through a structured, systematic program of on-the-job supervised learning; 

2. be clearly identified and commonly recognized throughout an industry; 

3. involve the progressive attainment of manual, mechanical or technical skills and knowledge which, in accordance with the industry standard for the occupation, would require the completion of at least 2,000 hours of on-the-job learning to attain; and 

4. require related instruction to supplement the on-the-job learning.

View a list of federally approved apprenticeship occupations. Questions about whether an occupation has been approved by DLI may be asked of the apprenticeship director. 

What process will the apprenticeship director follow to determine whether an occupation is an apprenticeable occupation in the building and construction trades if it is unclear from the federal list?

The apprenticeship director will consider whether the occupation involves construction, alteration, demolition, installation, repair, maintenance or hazardous material handling work at the site of the petroleum refinery, whether the occupation is included within a broader registered apprenticeship program standard in the building and construction trades, and will consult with USDOL and other states as appropriate.

How will compliance be tracked and enforced?

DLI's Division of Labor Standards will receive complaints of violations of the law. Owners, operators, contractors, and subcontractors should maintain sufficient records to demonstrate compliance with the requirements under the law. Records could include copies of contracts, documentation demonstrating whether applicable employees of contractors or subcontractors meet one of the four skilled and trained workforce criteria in law (download a sample recordkeeping template), payroll records and documentation to substantiate an exemption from the law’s requirements such as a project labor agreement, collective bargaining agreement, a request for referral of workers from a labor organization and the organization’s response or documentation of an emergency that makes compliance impracticable.

How can complaints be submitted?

Complaints can be submitted to DLI's Division of Labor Standards at 651-284-5075 or dli.laborstandards@state.mn.us.

Do the percentage requirements apply to the total contractor workforce?

No. Each contractor and subcontractor of any tier must comply with the percentage requirements for the applicable trade or occupation within the contractor’s workforce when performing construction, alteration, demolition, installation, repair, maintenance or hazardous material handling work at the site of the petroleum refinery.

What are the “other penalties” an owner, operator, contractor or subcontractors may be subject to?

This refers to the penalties provided under section 177.27, subdivision 7.

The penalties range from a minimum of $5,000 to not more than $10,000 for each violation. How will the commissioner determine the penalty amount?

As directed by law, the commissioner will consider the appropriateness of the fine to the size of the violator’s business and the gravity of the violation.

Can owners, operators, contractors or subcontractors appeal a finding of violation and/or a penalty?

Yes, an employer who receives a compliance order pursuant to section 177.27 may contest the order in writing within 15 days.

What affirmative action requirements apply?

Employers of apprentices must meet the affirmative action requirements as outlined in their standards of apprenticeship.

What dispute resolution process should be followed?

Employers of apprentices should follow the complaint procedure process outlined in their standards of apprenticeship.