Minnesota recently adopted a first-in-nation law that requires contractors to pay prevailing wage for subsidized housing projects in the state.
This action makes Minnesota the first state in the nation to mandate prevailing wages on projects funded by federal Low-Income Housing Tax Credits (LIHTC). Currently paying a prevailing wage is not mandated for LIHTC projects and is usually only triggered if these projects are coupled with other funding streams that require prevailing wages.
Prevailing wage laws establish minimum wage and benefit levels based on the wages paid for similar jobs in the county where the construction project is taking place. The new law also increases contracting transparency, extends Minnesota’s responsible contractor law, and holds developers accountable for wage-theft and other forms of worker mistreatment.
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