How to Avoid Prevailing Wage Violations

Prevailing wage laws are not static. They vary by state and are updated frequently, requiring confirmation that any contractors or subcontractors who work for you on federally or state-funded projects are paid a prevailing wage that is in accordance with the Davis-Bacon Act of 1931. This confirmation needs to be provided by electronically submitting a prevailing wage report weekly.


The required reports (Form WH-347) must be filed with the government agencies backing your contracts and needs to include information listing your employees and the type of work they do, plus accurately state what their wages are, how many hours they worked, which benefits they receive and what their withholdings are. For organizations and contractors that violate prevailing wage laws — intentional or not — there can be serious consequences.


Penalties for Prevailing Wage Violations

Noncompliance or submitting certified payroll reports that are incorrect or have been falsified can lead to serious penalties. These errors can lead to fines and sometimes the inability to compete for future government-backed contracts, which can wreak a contractor’s business. In rare instances, some contractors have served jail time. One doesn’t have to look far to find news of contractors who have gotten in trouble for violating prevailing wage laws.


A Florida contractor was caught violating the Davis-Bacon and Related Acts (DBRA) in 2020. Working on a senior center funded by the U.S. Department of Housing and Urban Development, this contractor was fined and agreed to pay over $124,000 in back wages and benefits for failure to pay the correct prevailing wages to subcontractors which included laborers, truck drivers, carpenters, and forklift operators. In addition to incorrect wages, this contractor also didn’t record hours correctly or pay fringe benefits.


A more recent example of a prevailing wage violation involves Maura Healey, who was the attorney general of Massachusetts from 2015 until becoming the state’s governor in 2023. In 2022, it was announced her office issued citations and levied fines on several contractors in the construction industry, including one which received 25 citations for prevailing wage violations, leading to more than $1.2 million in penalties and restitution.


Many contractors try to be honest with their prevailing wage reports, but with all the regulations and updates to track, it can be a cumbersome process while trying to keep up with regular working duties. That’s where automation comes in.

An Automated, Stress-Free Solution

Certified Payroll Reporting, powered by Points North, allows you to generate the required certified payroll reports weekly for each of your government-backed contracts, and then electronically submit them to the required agencies to meet compliance. It’s a simple, stress-free way to automate your certified payroll reporting while avoiding prevailing wage violations. Contact us for a free demo.

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