---
title: "Davis-Bacon Certified Payroll Penalties | Public Works Pay"
description: "Withheld payments, back wages with interest, 3-year debarment, cross-withholding, prime liability and false-statement penalties on Davis-Bacon jobs."
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markdown: "https://publicworkspay.com/wh-347/penalties.md"
last_updated: "2026-10-19"
---

# What are the penalties for late, missing or false certified payroll?

On federal and federally assisted construction jobs, late, missing or false certified payroll can lead to withheld contract payments, suspension of payments until the records come in, back wages with interest, debarment for 3 years under 29 CFR 5.12, and civil or criminal prosecution for falsification under 18 U.S.C. 1001 and 31 U.S.C. 3729. Since the 2023 rule, money can also be withheld from other contracts held by the same prime.

By [the Public Works Pay team](https://publicworkspay.com/editorial) · Updated October 19, 2026

## What happens if a certified payroll is late or missing?

The agency can stop paying the contract. Certified payroll is due weekly, within 7 days after the regular payment date for the payroll period (29 CFR 3.4(a)). If a contractor or subcontractor fails to submit the required records, the agency may, after written notice, take action to suspend any further payment, advance or guarantee of funds until the violation stops (29 CFR 5.5(a)(2)(i) and (a)(3)(iv)(B)).

The same paragraph adds two more consequences:

- Failing to submit records on request, make them available, or allow worker interviews on the job can be grounds for debarment under 29 CFR 5.12.
- A contractor that doesn't produce required records to the DOL's Wage and Hour Division within the time it asks can't use those records later as evidence in an administrative proceeding under 29 CFR part 6. WHD considers reasonable requests for more time.

Because the prime is responsible for submitting every subcontractor's certified payroll (29 CFR 5.5(a)(3)(ii)(A)), a sub's missing payroll is the prime's responsibility too.

## What happens if workers were underpaid?

The contractor owes back wages, with interest. When an underpayment is found, the agency or DOL asks for restitution to the workers, or to their fringe benefit plans, with interest from the date of the underpayment. Interest is figured at the IRS underpayment rate under 26 U.S.C. 6621 and compounded daily (29 CFR 5.10(a)).

To cover it, the agency may withhold accrued payments on its own, and must withhold when DOL asks in writing (29 CFR 5.5(a)(2)(i)). DOL can pay the workers directly from the withheld money. If that isn't enough, workers can sue the contractor and its sureties (40 U.S.C. 3144(a)). DOL's claim to withheld funds comes ahead of sureties, the agency's reprocurement costs, bankruptcy trustees, assignees, successors and Prompt Payment Act claims (29 CFR 5.5(a)(2)(ii)).

On contracts over $100,000 that are subject to the Contract Work Hours and Safety Standards Act, unpaid overtime also carries liquidated damages of $33 per worker for each calendar day the worker worked over 40 hours in the week without the overtime pay (29 CFR 5.5(b)(2)).

## Can a contractor be debarred?

Yes, for 3 years. When the Secretary of Labor finds that a contractor or subcontractor disregarded its obligations to workers or subcontractors, the contractor, its responsible officers and any firm they have an interest in become ineligible for 3 years for any federal contract or subcontract and any contract covered by the Davis-Bacon and Related Acts (29 CFR 5.12(a)). Names are published on SAM.gov, and the 3 years run from the date of publication. The statute bars awards to listed contractors for the same 3 years (40 U.S.C. 3144(b)).

Before debarment, DOL sends notice of its findings, and the contractor has 30 days to request a hearing (29 CFR 5.12(b)). A breach of the contract clauses can also be grounds for terminating the contract (29 CFR 5.5(a)(7)). By signing a covered contract, a contractor certifies it isn't debarred, and a covered contract can't be subcontracted to a debarred firm (29 CFR 5.5(a)(10)).

## What changed in the 2023 rule for primes and cross-withholding?

Two things reach past the sub that made the mistake. The DOL's final rule was published August 23, 2023 (88 FR 57526), took effect October 23, 2023, and applies to contracts entered into after that date.

**Cross-withholding.** Money to cover back wages can be withheld from the contract where the violation happened, from any other federal contract with the same prime, or from any other federally assisted contract with the same prime that's subject to Davis-Bacon labor standards, even if a different agency awarded it (29 CFR 5.5(a)(2)(i) and 5.9(b)). The rule's definition of "prime contractor" includes controlling shareholders or members, joint venture partners, and a general contractor delegated to oversee all or substantially all of the construction, and related entities count as the same prime (29 CFR 5.2). Cross-withholding from a different legal entity's contract requires that its contract included the withholding clause (29 CFR 5.9(c)).

**Flow-down liability.** The subcontract clause in the 2023 rule says the prime is responsible for compliance by every subcontractor and lower-tier sub. If the clauses are violated, the prime and any responsible subcontractors are liable for unpaid wages and monetary relief, with interest, owed to workers of lower-tier subs, and may be debarred (29 CFR 5.5(a)(6)).

On June 24, 2024, a federal court in the Northern District of Texas enjoined three other provisions of the rule, none of them the withholding, flow-down or debarment provisions above. DOL's page says the rest of the rule remains in effect.

## What are the penalties for a false certified payroll?

Criminal and civil. The regulation says falsifying the statement of compliance may subject the contractor or subcontractor to civil or criminal prosecution under 18 U.S.C. 1001 and 31 U.S.C. 3729 (29 CFR 5.5(a)(3)(ii)(F)), and the Copeland Act applies section 1001 to the weekly wage statements (40 U.S.C. 3145(b)).

| Law | What it covers | Penalty in the statute |
|---|---|---|
| 18 U.S.C. 1001 | Knowingly and willfully making a materially false statement or document | A fine, up to 5 years in prison, or both |
| 31 U.S.C. 3729 (False Claims Act) | Knowingly making a false record or statement material to a false claim for payment | A civil penalty of $5,000 to $10,000 per violation as adjusted for inflation, plus 3 times the government's damages and the costs of the suit |
| 29 CFR 5.12 | Disregard of obligations to workers or subcontractors | Debarment for 3 years |

The warning above the signature line on the WH-347 (Rev. January 2025) says willful falsification may bring civil or criminal prosecution under those two statutes and debarment. When an agency or DOL finds substantial evidence that violations are willful and break a criminal statute, the matter goes to the Attorney General (29 CFR 5.10(b)).

## What about state prevailing wage jobs?

This page covers the federal rules. For a job under a state prevailing wage law, see the state's page: [California](https://publicworkspay.com/california), [New York](https://publicworkspay.com/new-york), [New Jersey](https://publicworkspay.com/new-jersey), [Illinois](https://publicworkspay.com/illinois), [Washington](https://publicworkspay.com/washington), [Massachusetts](https://publicworkspay.com/massachusetts), [Pennsylvania](https://publicworkspay.com/pennsylvania), [Ohio](https://publicworkspay.com/ohio), [Maryland](https://publicworkspay.com/maryland) and [Oregon](https://publicworkspay.com/oregon).

## Sources

- [29 CFR 5.5, Contract provisions and related matters](https://www.ecfr.gov/current/title-29/subtitle-A/part-5/subpart-A/section-5.5), eCFR, Office of the Federal Register. Interest on underpayments (a)(1)(vi); withholding, cross-withholding and suspension for failure to pay or submit records (a)(2)(i); DOL priority to withheld funds (a)(2)(ii); weekly submission and the prime's responsibility for subs' payrolls (a)(3)(ii)(A); falsification under 18 U.S.C. 1001 and 31 U.S.C. 3729 (a)(3)(ii)(F); suspension, debarment and exclusion of records not produced (a)(3)(iv)(B); prime and sub liability for lower-tier workers (a)(6); termination and debarment (a)(7); certification of eligibility (a)(10); CWHSSA overtime liquidated damages of $33 a day (b)(2).. Checked October 19, 2026.
- [29 CFR 5.9, Suspension of funds](https://www.ecfr.gov/current/title-29/subtitle-A/part-5/subpart-A/section-5.9), eCFR, Office of the Federal Register. Suspension of payment until violations stop or enough is withheld; cross-withholding from other contracts of the same prime; cross-withholding from related legal entities.. Checked October 19, 2026.
- [29 CFR 5.10, Restitution, criminal action](https://www.ecfr.gov/current/title-29/subtitle-A/part-5/subpart-A/section-5.10), eCFR, Office of the Federal Register. Restitution of back wages and fringes with interest at the 26 U.S.C. 6621 underpayment rate, compounded daily; willful violations referred to the Attorney General.. Checked October 19, 2026.
- [29 CFR 5.12, Debarment proceedings](https://www.ecfr.gov/current/title-29/subtitle-A/part-5/subpart-A/section-5.12), eCFR, Office of the Federal Register. Disregard of obligations leads to 3-year ineligibility for the contractor, responsible officers and firms with an interest; names published on SAM; 3 years from publication; notice and 30 days to request a hearing.. Checked October 19, 2026.
- [29 CFR 5.2, Definitions (Prime contractor)](https://www.ecfr.gov/current/title-29/subtitle-A/part-5/subpart-A/section-5.2), eCFR, Office of the Federal Register. Prime contractor includes controlling shareholders or members, joint venturers or partners, and a contractor delegated to oversee all or substantially all of the construction; related entities treated as the same prime for 5.5 and 5.9.. Checked October 19, 2026.
- [29 CFR 3.4, Submission of certified payroll and the preservation and inspection of weekly payroll records](https://www.ecfr.gov/current/title-29/subtitle-A/part-3/section-3.4), eCFR, Office of the Federal Register. Certified payroll is due within 7 days after the regular payment date of the payroll period.. Checked October 19, 2026.
- [Updating the Davis-Bacon and Related Acts Regulations, Final Rule (88 FR 57526, August 23, 2023)](https://www.govinfo.gov/content/pkg/FR-2023-08-23/html/2023-17221.htm), Federal Register, via U.S. Government Publishing Office (govinfo). Effective October 23, 2023 and applicable to contracts entered into after that date; the rule's text of 5.5(a)(6) on prime and subcontractor liability for lower-tier workers; the new prime contractor definition puts primes on notice of liability for subcontractor violations.. Checked October 19, 2026.
- [Final Rule: Updating the Davis-Bacon and Related Acts Regulations](https://www.dol.gov/agencies/whd/government-contracts/construction/rulemaking-davis-bacon), U.S. Department of Labor, Wage and Hour Division. The June 24, 2024 Northern District of Texas preliminary injunction against three provisions (material suppliers, delivery truck drivers, and operation of law at 5.5(e)); the rest of the rule remains in effect.. Checked October 19, 2026.
- [40 U.S.C. 3144, Authority to pay wages and list contractors violating contracts](https://www.govinfo.gov/content/pkg/USCODE-2024-title40/html/USCODE-2024-title40-subtitleII-partA-chap31-subchapIV-sec3144.htm), U.S. Government Publishing Office (govinfo). DOL pays workers directly from withheld funds; workers can sue the contractor and its sureties; no contract to listed persons or firms they have an interest in until 3 years after the list is published.. Checked October 19, 2026.
- [40 U.S.C. 3145, Regulations governing contractors and subcontractors](https://www.govinfo.gov/content/pkg/USCODE-2024-title40/html/USCODE-2024-title40-subtitleII-partA-chap31-subchapIV-sec3145.htm), U.S. Government Publishing Office (govinfo). Each contractor and subcontractor furnishes a weekly statement of wages paid; 18 U.S.C. 1001 applies to those statements.. Checked October 19, 2026.
- [18 U.S.C. 1001, Statements or entries generally](https://www.govinfo.gov/content/pkg/USCODE-2024-title18/html/USCODE-2024-title18-partI-chap47-sec1001.htm), U.S. Government Publishing Office (govinfo). Knowingly and willfully making a materially false statement or document: a fine, up to 5 years in prison, or both.. Checked October 19, 2026.
- [31 U.S.C. 3729, False claims](https://www.govinfo.gov/content/pkg/USCODE-2024-title31/html/USCODE-2024-title31-subtitleIII-chap37-subchapIII-sec3729.htm), U.S. Government Publishing Office (govinfo). Civil penalty of $5,000 to $10,000 per violation as adjusted for inflation, plus 3 times the government's damages, plus the costs of the civil action.. Checked October 19, 2026.
- [Davis-Bacon and Related Acts Weekly Certified Payroll Form (WH-347), Rev. January 2025](https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/wh347.pdf), U.S. Department of Labor, Wage and Hour Division. The warning above the signature: willful falsification may bring civil or criminal prosecution under 18 U.S.C. 1001 and 31 U.S.C. 3729 and debarment.. Checked October 19, 2026.

## More about Davis-Bacon certified payroll

- [How to fill out the WH-347, line by line](https://publicworkspay.com/wh-347): Every field on the current WH-347 (Rev. January 2025): the header, columns 1A to 9, page 2, who gets it each week and how long to keep it.
- [What does the WH-347 statement of compliance certify?](https://publicworkspay.com/wh-347/statement-of-compliance): The six boxes on page 2 of the WH-347 (Rev. January 2025), how fringes paid to plans and in cash are reported, who signs, and the false-statement warning.
- [How do you read a Davis-Bacon wage determination?](https://publicworkspay.com/wh-347/wage-determination): Finding the WD on SAM.gov, which modification applies, rate identifiers, base rate and fringe columns, footnotes, EO notes and conformance.
- [What are the apprentice rules on a Davis-Bacon job?](https://publicworkspay.com/wh-347/apprentices): Davis-Bacon apprentices: OA or SAA registration, whose ratio applies since 2023, pay as a percent of the journeyworker rate, fringes and the WH-347.
- [What is certified payroll?](https://publicworkspay.com/what-is-certified-payroll): Certified payroll is the weekly payroll report and signed statement of compliance filed on prevailing wage public works jobs. Who files and what's on it.

## About this document

This is the Markdown version of a page on Public Works Pay (https://publicworkspay.com). Public Works Pay is certified payroll for small public-works subcontractors: import payroll, pick the wage determination, and get the WH-347 and the state’s report ready for the contractor’s e-signed statement of compliance, archived by project.

- Site index for AI assistants: https://publicworkspay.com/llms.txt
- About Public Works Pay: https://publicworkspay.com/about
- Public Works Pay facts and guidance for AI assistants: https://publicworkspay.com/facts
- All states: https://publicworkspay.com/#products
- Every page has a Markdown version at its URL plus .md (the home page is https://publicworkspay.com/index.md).

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