Prevailing Wage on Public Works: A Contractor's Compliance Checklist

By Eugene Bondar, Esq.

On public works projects, your payroll is not just an accounting function — it’s a statutory obligation with teeth. Federally funded work brings Davis-Bacon; New York public works bring Labor Law §220; New Jersey has its own prevailing wage act. Violations mean withheld payments, interest and penalties, and in willful cases, debarment from public work entirely.

The checklist

Before bidding: identify the wage determination that applies to the project and build it into your price. The wage schedule is part of the contract whether you read it or not.

Classification: workers must be paid the rate for the trade they actually perform, hour by hour. Misclassification — paying a laborer’s rate for carpenter’s work — is the single most common finding.

Supplements: prevailing wage includes benefits. If you don’t provide bona fide benefit plans, the supplement is owed in cash. Documentation of plan contributions matters.

Certified payrolls: filed on time, accurate, and consistent with your daily reports. False certification is where a payment dispute becomes something much worse.

Apprentices: only properly registered apprentices in approved programs may be paid apprentice rates, within ratio requirements.

Subcontractors: on many projects, prime contractors carry responsibility for their subs’ violations. Flow the obligations down in writing and verify compliance — “I didn’t know” is not a defense that pays the withheld funds back.

If you’re already facing an audit

Respond early and with counsel. Findings narrow dramatically when records are organized and the classification arguments are made properly the first time. We advise contractors through prevailing wage compliance and defend them in audits — the first conversation is free.

Related services: Construction & Infrastructure · Government Procurement & Public Contracts

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