What it means
On federally funded construction work covered by the Davis-Bacon Act — and on projects covered by many state prevailing wage laws — contractors must pay workers at least the prevailing wage rates set for their trade and area. To show they’ve done so, contractors submit payroll reports, typically weekly, listing each worker, their classification, hours worked, pay rate and deductions, along with a signed statement that the information is correct.
The exact requirements — which projects are covered, what must be reported and how — depend on the contract and the laws that apply to it.
An example: an electrical contractor working on a publicly funded school renovation records each electrician’s and apprentice’s hours on that job every day. At the end of each week, those hours feed the payroll system, which produces the certified payroll report submitted to the general contractor or the public agency.
Why it matters
- Compliance. Accurate certified payroll is a condition of working on covered public projects.
- Accurate time records. It depends on knowing exactly who worked on which job, for how long and in which classification.