Published date: 06/11/2026
Aliecia Taormina, CCEP, MCA has over 20 years of experience in construction (including a role as a Senior Compliance Manager of a Fortune 300 contractor), accumulating extensive prevailing wage and Davis-Bacon knowledge over her career.
Question
If a contractor fails to pay overtime under the Contract Work Hours and Safety Standards Act, does the penalty increase with additional overtime hours, or is it applied as a fixed amount for each violation?
Answer: Under CWHSSA, liquidated damages for overtime violations are applied as a fixed amount per employee for each calendar day in which a worker was required or permitted to work overtime without proper compensation, rather than increasing based on the number of overtime hours worked. This means the penalty does not scale with hours; instead, each day of violation constitutes a separate unit of liability, and total damages increase based on the number of affected employees and the number of days in which violations occurred.
Question
How can I determine whether a worker is entitled to per diem or travel-related pay on a prevailing wage or Davis-Bacon project?
Answer: Excellent question! Under the Davis-Bacon Act, entitlement to per diem or travel-related pay is not automatic. The Act requires contractors to pay laborers and mechanics the applicable prevailing wage—consisting of a basic hourly rate and fringe benefits—for all hours worked on the site of the work. However, the Act itself does not independently mandate per diem, subsistence, or travel pay; entitlement is driven primarily by the wage determination’s classifications.
When reviewing each classification, it is important to check for items such as zone pay, subsistence, or travel allowances. If they are not listed under the specific classifications, they may be included under special provisions (often in heavy/highway classifications).
You may also wish to review any applicable collective bargaining agreement (CBA) to determine whether these documents include provisions for subsistence, zone pay, or travel allowances. If they do, those requirements become enforceable components of compensation. In the absence of such provisions, per diem is generally treated as reimbursement for meals, lodging, and incidental expenses rather than wages, and it is typically not considered a bona fide fringe benefit under Davis-Bacon unless it meets specific criteria.
It is also important to understand that travel time compensation is not governed directly by the DBA but is determined based on Fair Labor Standards Act (FLSA) principles. While ordinary commuting is typically non-compensable, employer-directed travel during the workday is more likely to be compensable. Keep in mind that state-specific public works projects may have different legal requirements, so it’s important to review applicable state prevailing wage laws as well.
Question
How should updated wage determinations be reflected on certified payroll reports for federal and state-funded projects?
Answer: This can be tricky, as each state has different requirements for certified payroll formats and reporting. For DBA/DBRA projects, the WH-347 form requires contractors to enter the wage determination numbers on their weekly certified payrolls, demonstrating that workers were paid at least the required prevailing wage in effect.
This means that if the federal wage determination is updated for the project, it is best to reflect that change in the week you begin paying wages based on the new determination. You can also reach out to your prime contractor to confirm whether they would like a note about the wage determination change included under “Additional Remarks” on the WH-347. In my experience, it never hurts to over-document!
For state-funded projects, requirements vary. If the state does not require wage determination numbers to be reported on certified payrolls, then there may be no need to include the update.
However, dual-funded projects (those covered by both DBRA and state prevailing wage rules) are different. Contractors must comply with both federal and state reporting requirements. Under DBRA, contractors may use an alternative certified payroll form as long as it includes all required WH-347 data elements. In these cases, be sure to include the updated federal wage determination number somewhere on your certified payroll report, as this is a federal requirement.
If you are using LCPtracker, entering wage determination information for projects with effective dates can help ensure that the appropriate wage rates, classifications, and applicable wage determination numbers for each payroll period are correctly reflected.
.
.
Have a burning question about labor compliance that you’ve been eager to ask? Submit it anonymously to our live submission form and you might just see it answered in a future entry of our monthly Ask the Expert series! You can also check out our past entries here.
.
.
Want to get notified the moment we publish a new edition of Ask the Expert? Sign up for LCPtracker’s monthly newsletter. We’ll also update you with trending news, educational webinars, important software updates and more.
.
.
.
These materials are being issued with the understanding that LCPtracker is not engaged in rendering legal or other professional services and is providing these for informational purposes only. If legal, accounting, or tax expert assistance is required, the services of a competent legal, accounting or tax professional should be sought.
