Public work projects through state agency contracts dictate the minimum amount of wages and related fringe benefits which must be paid for various type s of construction work. Not only do these regulations state the minimum hourly wage, but also regulate the maximum number of hours of weekly work.

Both contractors and subcontractors are required to make wage schedules available at the construction site so that employees have access to them. The contracting agency will require both the contractor and or subcontractor to submit original payroll records which show the employees name, hours worked per day and the rate of pay.It is important that the contractor maintain records such as time sheets, cancelled checks etc.

If the department of labor audits your payroll because of an investigation, not only will underpaid wages have to be paid but penalties of up to 25% of the underpaid wages may be imposed as well. This is in addition to losing the contact and be barred from participating in future contracts.

It is thus imperative that contractors and subcontractors implement and maintain accurate record keeping to comply with the labor laws