Payroll Compliance Overview

Chief Engineer's Memo on Adherence to Employee Pay Regulations

CDOT Payroll Deduction Memo 

Davis-Bacon and Related Acts (DBRA)

This law requires prevailing wage (minimum), fringe benefits, and pay every seven days for the work being done. DBRA is monitored and enforced by CDOT.

Fair Labor Standards Act (FLSA)

FLSA covers overtime and the workweek and is enforced by US DOL. Anyone complaining under the governance of FLSA will be referred to US DOL. Most complaints are about travel time. Any travel time (company truck, travel to
project on job is FLSA, not DB) beyond a normal home to work will count towards the 40 hours.

Contract Work Hours and Safety Standards Act (CWHSSA)
CWHSSA deals with overtime which is enforced by CDOT. This law requires all hours over 40 in the work week must be paid at 1.5 times the base rate of pay. It is not limited to project hours but on the worker’s total hours in a week. Fringe is paid hour for hour. The consequences of non-compliance can include fines, imprisonment, or both. This act covers watchmen and guards.

Copeland Act

The Copeland “anti-kickback” act of 1934 regulates the deductions from an employee’s paycheck allowed - enforced by CDOT. Deductions by law, taxes, and health benefits are allowed. Other deductions that benefit the employee may be
allowed, but no deductions are allowable that reduce the wage below the contract minimum wage (Davis-Bacon wages on federal projects). After the close of the project, there is a three-year retention requirement for all project documents.
Damages could be up to $5000 and five years of jail time.

• What is Certified Payroll?
  In order to ensure that the construction labor workforce is paid prevailing wages for their work, contractors must enter project payroll data into CDOT's LCPtracker system on a weekly basis, and then certify that the data entered is compliant with federal labor regulations. Contractors must also submit the Contractor Fringe Benefit Statement for each employee via LCPtracker, and benefits must be expressed as a dollar amount per hour. Benefits required by law are not eligible for consideration in the Fringe Benefits (e.g., Social Security, Affordable Care Act, and Workers' Compensation). 
• Who is Required to Report Certified Payrolls?
  Every contractor working on a CDOT job is responsible for entering and certifying weekly payroll while actively on the project. The prime contractor is then responsible for reviewing and approving all data entered by subs, and the project engineer (CDOT, consultant, or local agency) will then review and either accept or reject the payrolls for the week.
• CDOT Certified Payroll Requirements For Construction Contracts Standard Special Provision: Frequently Asked Questions - PDF document
• Read the CDOT Certified Payroll Guidance Manual for detailed answers to common payroll questions.

• Advertise Proper Wage Decision(s)
• Accept Weekly Payroll
• Wage Conformance Request 

• Advertise Proper Wage Decision(s)
• Accept Weekly Payroll
• Wage Conformance Request