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Certified Payroll and Prevailing Wage Compliance in NYC

On a prevailing wage project in New York, every contractor and subcontractor must submit certified payroll reports — sworn statements that workers were paid at least the prevailing wage. Failure to comply can result in back-pay liability, contract debarment, and criminal charges. This guide covers what you need to submit, when, and how to avoid the violations that most commonly lead to enforcement action.

What Is a Certified Payroll?

A certified payroll is a sworn statement (typically signed under penalty of perjury) submitted by a contractor or subcontractor that documents, for each employee on a prevailing wage project:

  • Employee name and last four digits of SSN
  • Job classification (e.g., Journeyman Electrician, Foreman)
  • Trade / craft
  • Hours worked each day of the week (straight time and overtime)
  • Hourly rate paid (base wage)
  • Fringe benefit contributions paid (by fund)
  • Gross wages and net wages
  • Contractor name, license, and EIN

In New York City, certified payrolls for Article 8 public work projects are submitted through the LCPtracker system, managed by the NYC Comptroller's Bureau of Labor Law. Some agencies also accept WH-347 (federal form) for federally funded projects.

When Certified Payroll Is Required

Certified payroll requirements are triggered by the funding and governance structure of the project:

City-funded public work (Article 8)
Threshold: Any contract over $10,000
Who: All contractors and sub-tiers
System: LCPtracker / NYC Comptroller
State-funded public work (Article 8)
Threshold: Any contract over $10,000
Who: All contractors and sub-tiers
System: WH-347 or agency-specific system
Federally funded projects (Davis-Bacon)
Threshold: Any contract over $2,000
Who: All contractors and sub-tiers
System: eCPR (DOL) or agency system
Tax incentive projects (421-a successor, LIHTC, etc.)
Threshold: Varies by incentive program
Who: As required by program agreement
System: Program-specific

The Six Most Common Violations

1. Worker Misclassification
High Risk
Labeling a Foreman as a Journeyman to avoid paying the premium rate. Or classifying skilled craft workers as "helpers" or "laborers." Each hour of misclassification creates back-pay liability at the rate difference, plus interest.
2. Failure to Pay Full Fringe Benefits
High Risk
Submitting certified payrolls showing correct base wages but remitting nothing (or less than required) to the union benefit funds. The Comptroller's office audits fund remittances separately from payroll submissions.
3. Late or Missing Submissions
Medium Risk
NYC requires weekly certified payroll submissions through LCPtracker. Late submissions trigger deficiency notices. Chronic lateness can result in contract suspension and withholding of payment.
4. Using Expired Rates
Medium Risk
After July 1, the prevailing wage rate increases. Contractors who continue paying the prior year rate without adjusting create an underpayment gap that accumulates for every worker across every week until corrected.
5. Sub-Tier Contractor Non-Compliance
High Risk
The prime contractor is jointly liable for violations by its subcontractors. If a sub fails to pay prevailing wages, the prime can be held responsible. The prime must actively monitor sub-tier compliance — not just collect signatures.
6. Incorrect Overtime Calculation
Medium Risk
On prevailing wage work, overtime is calculated on the total prevailing wage rate (some argue on base wage; consult legal counsel for your specific project). Under-calculating OT multipliers creates systematic underpayment.

The Owner's Role in Compliance

Many owners assume compliance is entirely the contractor's responsibility. In reality, the owner sets the conditions for compliance through contract drafting, oversight, and payment controls. Best practices for owners:

  • Require LCPtracker enrollment in the prime contract: Make it a contract obligation, not just a suggestion. Specify the submission schedule and consequences for non-compliance.
  • Condition payment on certified payroll receipt: Withhold progress payment approval until that pay period's certified payrolls are submitted and accepted. This is the single most effective enforcement mechanism available to an owner.
  • Require sub-tier flow-down provisions: The prime must be contractually obligated to impose the same requirements on all sub-tiers. Include audit rights for the owner down the subcontract chain.
  • Hire a dedicated compliance officer or use WageHound: On projects over $10M, the volume of certified payroll submissions requires dedicated review. Use the WageHound contractor rate upload and comparison tools to flag rate discrepancies systematically.

Enforcement and Penalties

The NYC Comptroller's Bureau of Labor Law investigates prevailing wage complaints and conducts routine audits. Penalties under Article 8 include:

Back pay + interest
Full restitution of underpaid wages plus interest at a statutory rate from the date of underpayment
Civil penalty
Up to 25% of back wages owed, imposed on the contractor
Debarment
Exclusion from NYC public work contracts for up to 5 years for repeat or willful violations
Criminal referral
Willful violations of Article 8 can be referred for criminal prosecution — a misdemeanor or felony depending on severity

✓ Compliance Monitoring Checklist for Owner's Representatives

  • Confirm LCPtracker enrollment for prime and all active subs before first pay period.
  • Review certified payroll submissions weekly — do not batch-approve.
  • Cross-reference job classifications reported against crew sign-in sheets.
  • Verify fringe benefit line items match the current Comptroller 220 Schedule rates.
  • After July 1 each year, confirm all contractors have updated to the new prevailing rate.
  • Use the WageHound prevailing wage lookup to spot-check any rate that looks below market.
  • Maintain a sub-tier tracker — know every contractor on site and ensure they are enrolled.
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