Davis Bacon Act: Certified Payroll Reporting

The Davis-Bacon Act (the “Act”) requires payment of “prevailing wages.”  See 40 USC Section 3142(c).  The minimum wages to be paid are those that the Secretary of Labor determines to be prevailing for the corresponding classes of laborers and mechanics employed on projects of a character similar to the contract work in the locality where the work is to be performed.  The Act requires that each contract above $2,000.00 “to which the Federal Government or the District of Columbia is a party, for construction, alteration or repair, including painting and decorating, of public buildings and public works... shall contain a provision stating the minimum wages to be paid” to “all mechanics and laborers employed directly upon the site of work.”  Id. 

In addition to the Act itself, Congress has added these prevailing wage provisions to numerous laws -- referred to as “related Acts” under which Federal agencies assist construction projects through grants, loans, guarantees, insurance and other methods.  See US Department of Labor, Memorandum No. 207 (May 29, 2009).

As a result of the American Recovery and Reinvestment Act all projects funded by the stimulus package will require the payment of prevailing wages and submission of weekly-certified payroll reports.

In January of 2009 -- a month before the American Recovery and Reinvestment Act was implemented -- the Department of Labor (“DOL”) revised its certified payroll reporting requirements and Prime/General contractors and subcontractors performing work on federally funded construction projects are no longer required to display the home address and social security numbers of employees on the weekly certified payroll reports.  However, they are required to display the employee’s full name and provide an individually identifying number for each employee.  The applicable regulation suggests the use of the last four digits of the employee’s social security number.

The DOL provides for convenience a Certified Payroll form (WH-347), and if properly filled out it will satisfy the requirements of the Davis-Bacon Act. If you use the form, at least the following information needs to be provided:

• Information about your business (name/address etc.)
• Payroll No. and the workweek ending date.
• Project and location.
• Project or Contract No.
• Each workers name and indentifying number

• Work classification

• Hours worked and total
• Rate of pay
• Gross Amount Earned
• Deductions
• Net Wages Paid for Week
• Fringe benefits

There may be other information needed for completion of the form - please go to DOL’s website at http://webapps.dol.gov/libraryforms/FormsByNum.asp for further information.