Broadband Construction Projects and Prevailing Wage in Minnesota

Minnesota is undertaking a multibillion investment to expand reliable high-speed internet access to hundreds of thousands of homes, businesses, farms, schools, and other community institutions. However, these investments are occurring as construction employers are experiencing acute labor shortages. Only a small minority of Minnesota’ taxpayer-funded broadband projects pay prevailing wages, which data shows leads to less hiring of local businesses, lower wages for construction workers, and lower levels of workforce productivity. Minnesota may consider expanding prevailing wage coverage on broadband projects to help combat skilled labor shortages and improve transparency and accountability for taxpayers. Expanding prevailing wage coverage to more broadband projects would likely bolster economic and workforce outcomes on these projects and ensure that they are built safely, on-time, and within budget by Minnesota-based contractors who employ skilled local workers.