Is the hauling of material to and from a construction project subject to prevailing wage?
Yes, any business entity that delivers materials or products to and from a public works project that is funded in whole or in part with state and/or federal funds is subject to the prevailing wage specifications incorporated into a contract. However, refer to the exemptions section below for hauling activities that are not subject to the state and/or federal prevailing wage regulations.
What hauling activities are subject to the state prevailing wage law?
- The hauling of any or all stockpiled or excavated materials on the project work site to other locations on the same project even if the truck leaves the work site at some point;
- the delivery of materials from a facility that does not meet the requirements of a commercial establishment to the project and the return haul to the starting location either empty or loaded;
- the delivery of materials from another construction project site to the public works project and the return haul empty or loaded;
- the hauling required to remove any materials from the public works project to a location off the project site and the return haul if empty or loaded from other than a commercial establishment;
- the delivery of materials or products by trucks hired by a contractor, subcontractor, or agent thereof, from a commercial establishment;
- the delivery of sand, gravel, or rock, by or for a commercial establishment, which is deposited substantially in place, either directly or through spreaders from the transporting vehicle;
- the delivery of material from a prime contractor's off-site material operation, that is not a separate commercial establishment, to the public works project and the return haul empty or loaded.
What hauling activities are subject to the federal prevailing wage law?
- The delivery of material from an immediately adjacent, dedicated off-site facility to the project and the return haul empty or loaded;
- the hauling of any or all stockpiled or excavated materials on the project work site to other locations on the same project even if the truck leaves the work site at some point.
What hauling activities are exempt from prevailing wage?
Pursuant with state regulations, a business entity that delivers or hires trucks to deliver its materials or products from an off-site facility that is considered a commercial establishment to the project site of work is exempt from the state prevailing wage requirements. However, trucks that deposit mineral aggregate on the project site of work substantially in place (PDF, 58 KB) from a commercial establishment are subject to the state prevailing wage requirements, unless the mineral aggregate is stockpiled.
Pursuant with federal regulations, a business entity that delivers materials or products to or from an off-site facility that is not immediately adjacent and dedicated to the public works project is not subject the federal prevailing wage requirements.
What are the state truck rental rates?
Truck rental rates are minimum hourly compensation requirements established by the Minnesota Department of Labor and Industry through an annual survey process. The hourly truck rental rate is comprised of two components: OPERATING COST + PREVAILING WAGE. A contractor, subcontractor, or agent thereof that obtains services from an Independent Truck Owner/Operator (ITO), Multiple Truck Owner (MTO), Trucking Company and/or Truck Broker to perform and/or provide covered hauling activities under a contract that is funded in whole or in part with state funds must comply with the payment of the appropriate State Truck Rental Rates.
Independent Truck Owner/Operators (ITOs), Multiple Truck Owners (MTOs), Trucking Companies and/or Truck Brokers are encouraged to participate in the Minnesota Department of Labor and Industry’s annual survey to establish statewide operating costs for trucks. To participate, please complete the Construction Truck Operational Cost Survey (PDF, 30 KB) and submit it to the Minnesota Department of Labor and Industry; instructions concerning the completion of the form are included on page 2 of the survey. Mn/DLI has also provided an informational letter (PDF, 22 KB) regarding the process.
To help you track your yearly expenses, MnDOT provides a truck yearly cost spreadsheet workbook (Excel, 176 KB).
What are the reporting requirements for trucking?
In order to demonstrate the payment of truck rental rates, a contractor, subcontractor, or agent thereof must complete one or both of the Month-End Trucking Reports, along with the Statement of Compliance Form provided above and submit to the contracting agency. The submission requirements are located near the bottom of the Statement of Compliance Form.
A contractor, subcontractor, or agent thereof that has employees operating trucks must submit a certified payroll report. Please refer to the Certified Payrolls page for submission requirements.