Minimum Criteria for RCL

In order to meet the minimum criteria of a responsible contractor, the contractor must meet the following criteria, established by Minnesota Statute § 16C.285, subdivision 3:

  1. The contractor must (i) be in compliance with worker’s compensation and unemployment insurance requirements; (ii) be currently registered with the Department of Revenue and the Department of Employment and Economic Development if it has employees; (iii) have a valid federal tax ID or a valid Social Security number if an individual; and (iv) have filed a certificate of authority to transact business in Minnesota with the secretary of state if a foreign corporation or cooperative;
  2. The contractor or related entity must be in compliance with, and during the three years prior to submitting its verification, have not violated Minnesota Statutes § 177.24 (minimum wage), 177.25 (overtime), 177.41 to 177.44 (prevailing wage), 181.13 (prompt payment of wages), 181.14 (payment to employees who quit or resign), 181.722 (misrepresentation of employment relationship), 29 U.S.C. sections 201-209 (Fair Labor Standards Act), or 40 U.S.C. sections 3141-3148 (Davis-Bacon Act). A contractor violates these statutes for purposes of the Responsible Contractor Law when:

    (I) the contractor repeatedly fails to pay statutory required wages or penalties on one or more separate projects for a total underpayment of $25,000 or more within a three-year period;

    (II) the contractor has been issued an order to comply by the commissioner of labor and industry and that order has become final;

    (III) the contractor has, within the three years prior to its verification (required to be submitted with its bid) been issued at least two determination letters from the Department of Transportation finding underpayment to its own employees;

    (IV) the contractor has repeatedly or willfully violated any of these statutes as found by the commissioner of the department of labor and industry in an order to comply;

    (V) the contractor has been issued a ruling or findings of underpayment by the administrator of the Wage and Hour Division of the United States Department of Labor and the ruling or findings have become final or have been upheld by and administrative law judge or the Administrative Review Board; or

    (VI) the contractor has been found liable for underpayment of wages or penalties or misrepresenting a construction worker as an independent contractor in an action brought in a court having jurisdiction;

  3. The contractor is in compliance with and, for the three years prior to its verification, has not violated Minnesota Statute § 181.723 or Chapter 326B as demonstrated by the contractor being issued a final administrative or licensing order;
  4. The contractor or related entity has not had a certificate of compliance required under Minnesota Statute § 363A.36 revoked or suspended more than twice during the three years prior to submitting its verification, with the revocation or suspension becoming final;
  5. The contractor has not received more than one final determination in the three years prior to submitting its verification, assessing a monetary sanction from the Department of Administration or Transportation for failure to meet targeted group business, disadvantaged business enterprise, or veteran-owned business goals, due to a lack of good-faith effort;
  6. The contractor or related entity is not currently suspended or debarred by the federal government or the state of Minnesota or any of its departments, commissions, agencies, or political subdivisions; and

Violations as defined in items 2 to 5 occurring prior to July 1, 2014 shall not be considered in determining if a contractor meets the Responsible Contractor minimum criteria.

For a more detailed summary of the Responsible Contractor Law, click here.