Davis Bacon Related Acts

Under the DBRA, contractors and subcontractors are required to provide a weekly payroll to the State Highway Agency (SHA) for every week when any contract work is performed.
Government contractors and federal subcontractors performing projects involving construction of a highway in South Dakota, which is worth at least $10000 in state funds, or at least $2000 in federal funds, need to submit payroll reports as well as the most recent SDDOT Statement of Compliance form (latest version updated in March 2017). You can find more details on the Statement of Compliance form here. Incomplete payroll reports and submission without the most recent Statement of Compliance form are unacceptable.

The weekly payroll to be submitted to the SHA must accurately and completely include information about each mechanic and laborer who worked on the site. The following should be included in the payroll:

• Full name of the employee
• Individual identification number of the employee, i.e. last four digits of the employee’s social security number
• The employee’s classification for type of work performed
• Daily and weekly number of hours worked
• Hourly rates of wages paid, which would include the rates of contributions or costs anticipated for fringe benefits or equivalent in cash
• Deductions made
• Actual wages paid to the worker Note that the US Department of Labor’s Rule stipulates that the full social security numbers and home addresses should not be included in the weekly payroll.

The Statement of Compliance Form should be signed by the contractor, subcontractor, his/her agent who pays, or his/her agent who supervises the payments. The statement should certify the following:

• That the weekly payroll submitted contains the required information
• That the information in the weekly payroll submitted is correct and complete
• That payment in full weekly wages earned was made to each worker employed on the contract during the payroll period, without direct or indirect rebate, and direct or indirect deductions (except for permissible deductions)
• That each worker has been paid not less than the applicable prevailing wage rate and fringe benefits, or equivalent in cash, for the work classification performed, as specified by the wage decision state in the contract

Any willful falsification of the payroll report and the Statement of Compliance can result in criminal prosecution and/or civil action. Each weekly payroll should be submitted with the signed State of Compliance form, and should be submitted to the SHA within seven days after the payment of wages. Failure to do so could result to the suspension of contract pay estimates.

Many public agencies in South Dakota implement certain labor compliance programs. These are intended to minimize the risks related to public works projects. As a contractor/subcontractor, you should be familiar with the following programs or behavior:

• Local labor groups and unions and their concerns
• High profile projects under intense public scrutiny
• Alternative to Project Labor Agreements (PLA’s)
• Desire to ensure fair competition among all contractors
• Desire to ensure proper wage payment to all workers