U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

 INVESTIGATIVE PROCEDURES 

 UNDER 

 DBA/DBRA/CWHSSA
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

REORGANIZATION PLAN NO. 14 OF 1950

DAVIS-BACON LABOR STANDARDS/ 

CONTRACT STIPULATIONS 

SPECIFIC STEPS IN CONDUCTING DBA/DBRA/CWHSSA 

INVESTIGATIONS

CONCLUSION OF INVESTIGATION

REPORT WRITING

THE HEARING PROCESS 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

1

REORGANIZATION PLAN NO. 14 OF 1950 

Purpose

◊ To promote responsibility for uniform and effective DBA/DBRA enforcement 

among federal procuring agencies under DOL coordination. 

DOL Functions/Responsibilities

◊ Secretary of Labor – and, by delegation, the WHD – is responsible for: 

 1. Determining prevailing wages. 

 2. Issuing regulations and standards to be observed by contracting 

agencies. 

◊ DOL performs an oversight function and has authority to conduct independent 

investigations. 

Contracting Agency Functions/Responsibilities

◊ Federal agencies that award contracts and provide federal assistance have day-today enforcement responsibilities. The federal agency responsibilities include 

activities such as: 

 1. Ensuring the incorporation of Davis-Bacon contract stipulations and

appropriate wage determinations in DBA/DBRA covered contracts 

(and appropriate guidance concerning the application of multiple 

wage schedules) in accordance with 29 C.F.R. § 1.6(b) and 29 C.F.R. 

§ 5.6. 

 2. Ensuring that the Davis-Bacon poster (WH 1321) and the applicable 

wage determination(s) and approved conformances are posted at the 

site of the work. 29 C.F.R. § 6.6(a)(1)(i). This poster can be 

downloaded from the “WHD website ( http://www.dol.gov/whd/). 

 3. Reviewing certified payrolls in a timely manner. 29 C.F.R. 

§ 5.6(a)(3). 

 4. Conducting employee interviews. 29 C.F.R. § 5.6(a)(3). 

 5. Conducting investigations, as appropriate, and forwarding refusal to 

pay and/or debarment consideration cases to WHD for appropriate 

action. 29 C.F.R. § 5.6 and All Agency Memorandum No. 182. 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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 6. Submitting enforcement reports and semi-annual enforcement reports 

to the DOL. 29 C.F.R. § 5.7 and All Agency Memorandum No. 189. 

◊ Contracting agencies cannot contract out responsibility for the enforcement of the 

DBA/DBRA requirements. 

◊ Federal contacting agencies are responsible for ensuring that grant recipients who 

have contracting responsibilities properly apply and enforce DBA/DBRA. 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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DAVIS-BACON LABOR STANDARDS 

CONTRACT STIPULATIONS 

(29 C.F.R. § 5.5, also reiterated at 48 C.F.R. § 52.222-6 through 52.222-15)

Definition 29 C.F.R. § 5.2(f).

 The term “labor standards” means the requirements of: 

 ◊ The Davis-Bacon Act 

 ◊ The Contract Work Hours and Safety Standards Act 

 ◊ The Copeland Act 

 ◊ The prevailing wage provisions of the Davis-Bacon related Acts 

 ◊ Regulations, 29 C.F.R. Parts 1, 3 and 5, which govern the administration 

and enforcement of the DBA, DBRA, and CWHSSA 

 29 C.F.R. Part 5 requires contracting agencies to include in any DBA/DBRA covered 

construction contract the specified labor standards requirements. Normally these 

requirements are found in the contract under the heading “Davis-Bacon Act” or

“labor standards” or “prevailing wage requirements” or “federal requirements”

and include: 

 1. Minimum wages - All laborers and mechanics employed or working upon 

the site of work must be paid at least the applicable prevailing wage rate 

for the classification of work performed as listed in the applicable wage 

determination or a rate approved in accordance with the “conformance 

process” set forth at 29 C.F.R. § 5.5(a)(1). The laborers and mechanics 

working on the site of work must be paid weekly.

 2. Withholding - The federal agency or the loan or grant recipient shall upon 

its own action or upon written request of an authorized representative of the 

DOL withhold or cause to be withheld from the contractor under this 

contract or any other federal contract with the same prime contractor, or any 

other federally-assisted contract subject to Davis-Bacon prevailing wage 

requirements, which is held by the same prime contractor, so much of the 

accrued payments or advances as may be considered necessary to pay the 

full amount of wages required by the contract. (The processing of monies 

so withheld is discussed further in the “DBA/DBRA/CWHSSA

WITHHOLDING” section of this book.) 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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 3(a) Maintaining basic payroll records - The contractor must maintain basic 

payroll records during the course of the work and preserve them for three 

years. Such records shall contain: 

 ◊ Name of each worker 

 ◊ Address 

 ◊ Social security number 

 ◊ His or her correct classification 

 ◊ Hourly rates of wages paid 

 ◊ Daily and weekly number of hours worked 

 ◊ Deductions made and actual wages paid 

 ◊ Contractors employing apprentices or trainees under approved 

programs must have written evidence of the registration of the 

apprenticeship program and certification of the trainee program, 

copies of the individual registration forms of the apprentices and 

trainees, and written evidence of the applicable ratios and wage 

rates. 

 (b) Submission of certified payroll records - The contractor must submit 

weekly a copy of all payrolls to the contracting agency. The payrolls 

submitted must set out accurately and completely all of the basic payroll 

information listed above. 

 ◊ The payroll information may be submitted in any form desired. 

Optional payroll form WH-347 is available on WHD website at: 

 http://www.dol.gov/whd/forms/wh347instr.htm 

 The form available there can be used as an electronically fillable 

form. (The WH-347 form is also published in the Federal 

Acquisition Regulations at 48 C.F.R. § 53.303-WH-347). 

 ◊ The prime contractor is responsible for the submission of the 

certified payrolls to the contracting agency (including for all 

subcontractors on the project). 

 ◊ Each payroll submitted must be accompanied by a “Statement of 

Compliance” as required by the Copeland Act and 29 C.F.R. 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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Part 3. (A form for this purpose is available on the reverse of 

Optional form WH-347.) 

 ◊ The falsification of any of the above certifications may subject 

the contractor or subcontractor to civil or criminal prosecution. 

 Thus, the contractor is put on notice in the contract itself that 

criminal prosecution could result if falsified payrolls are 

submitted to the government. 

 ◊ The contractor or subcontractor must make the payroll records 

available for inspection, copying, or transcription by authorized 

representatives of the contracting agency or the DOL, and must 

permit such representatives to interview employees during 

working hours on the job. 

 ◊ If the contractor or subcontractor fails to submit the required 

records or to make them available, the federal agency may, after 

written notice to the contractor, sponsor, applicant, or owner, 

take such action as may be necessary to cause the suspension of 

any further payment, advance, or guarantee of funds. 

 ◊ Furthermore, failure to submit the required records upon request 

or to make such records available may be grounds for 

debarment action. 

 4(a) Apprentices - Apprentices are permitted to work at less than the 

predetermined rate only when all of the following conditions are met: 

 ◊ Employed pursuant to and individually registered in a bona 

fide apprenticeship program registered with the U.S. DOL, 

Bureau of Apprenticeship and Training (BAT), or with a state 

apprenticeship agency recognized by BAT. (Note - the 

program itself must be registered and the apprentice must 

be individually registered in the program). 

 ◊ The allowable ratio of apprentices to journeymen on the job 

site in any craft classification shall not be greater than the ratio 

permitted to the contractor as to the entire work force under the 

registered program. 

 ◊ The Davis-Bacon labor standards apprentices state requirements 

for how to pay fringe benefits and allow for portability of 

apprenticeship programs. 

 ◊ The labor standards specify that if a contractor violates any of 

the provisions, then the person considered to be an apprentice 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

6

must receive the full amount of the applicable prevailing wage 

rate for the classification of work performed. 

 (b) Trainees - Trainees are permitted to work at less than the predetermined 

rate only when all of the following conditions are met. 

 ◊ Employed pursuant to and individually registered in a program 

which has received prior approval, evidenced by formal 

certification by the U.S. Department of Labor, Employment and 

Training Administration, Bureau of Apprenticeship and 

Training (BAT). (Note: State agency approval of trainee 

programs is not recognized for DBA/DBRA purposes.)

 ◊ The ratio of trainees to journeymen on the job site shall not be 

greater than permitted under the plan approved by the 

Employment and Training Administration. 

 ◊ Labor standards for trainees also have requirements for how to 

pay fringe benefits. 

 ◊ There is no portability of a trainee program from one locality to 

another. 

 5. Copeland requirements - All contractors must comply with the Copeland 

Act requirements and the requirements in 29 C.F.R. Part 3, which prohibits 

kick-backs and sets forth rules concerning deductions from employees’ 

wages. 

 6. Subcontracts - The labor standards provisions require the contractor to 

insert the labor standards clauses in any subcontract. This clause further 

stipulates that the prime contractor shall be responsible for compliance by 

any subcontractor with the labor standards requirements in the contract. In 

effect, the prime contractor is ultimately responsible for the payment of the 

back wages. 

 Note: A definition for subcontractor is not found in the regulations. 

A subcontractor is any person (other than an employee) or 

firm who has agreed, either verbally or in writing, to perform 

any of the work required under the contract. 

 7. Contract termination and debarment - Debarment means that a firm and 

its responsible officers, and firms in which they have an interest (or 

substantial interest for related Act cases) are not permitted to work on 

covered contracts for three years. If a contractor violates any of the labor 

standards requirements, the contractor may be terminated from the contract 

and/or debarred. 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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 8. All rulings and interpretations of the DBA/ DBRA issued in 29 C.F.R. 

Parts 1, 3 & 5 are incorporated by reference in the contract. 

 9. Disputes under the contract relating to the Davis-Bacon labor standards 

requirements must be submitted to the DOL for resolution pursuant to the 

Secretary of Labor’s authority under Reorganization Plan No. 14 of 1950, 

and 29 C.F.R. Parts 5, 6 and 7. 

 10. Certification of eligibility - By entering into the contract, the contractor 

certifies that no person or firm who has an interest in the contractor’s firm 

is a person or firm ineligible to be awarded government contracts, i.e., not 

debarred. 

 ◊ This labor standards clause further stipulates that no part of the 

contract shall be subcontracted to any person or firm debarred. 

 ◊ The penalty for making false statements about eligibility for 

government contract work can be criminal prosecution. 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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SPECIFIC STEPS IN CONDUCTING 

DBA/DBRA/CWHSSA INVESTIGATIONS 

The following guidance is intended to list the various steps that are typically undertaken by 

contracting agencies and WHD in conducting a DBRA/CWHSSA investigation. 

Preliminary Steps

◊ Obtain the following information: 

 1. Copy of the labor standards clauses in the contract. 

 2. Copy of the Davis-Bacon wage decision(s) included in the contract, and in 

the case of multiple schedules, any instructions concerning their 

application. 

 3. Copies of the certified payrolls submitted by the employer under 

investigation. 

 4. Employer identification number. 

Initial Employer Contact

◊ A responsible official of the firm must be contacted at the start of the 

investigation. 

◊ When investigating a subcontractor, find out what information on labor standards 

and wage determinations have been provided by the prime contractor to the 

subcontractor. Ask the subcontractor for a copy of the subcontract, if one exists. 

◊ When a subcontractor is being investigated, the prime contractor must be notified 

at the beginning of the investigation. 

 ◊◊ The prime contractor can provide information on the subcontractor’s 

performance and may have records relating to the number of employees the 

subcontractor had on the project, the hours they worked, and the period of 

time they were on the project. The prime contractor should be asked to 

provide a copy of the subcontract, if it exists. 

 ◊◊ The prime contractor has responsibility for compliance on the contract and 

is liable for back wages not paid by the subcontractor, and may decide to 

withhold final payment from the subcontractor until the back wage issues 

are resolved. 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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◊ Inform the employer that the purpose is to make an investigation to determine 

compliance with the pertinent statutes and regulations and outline in general 

terms the scope of the investigation, including the examination of pertinent 

records, employee interviews and physical inspection of the project. 

◊ Obtain the exact legal name of the firm and any trade names, the full address, full 

names of owners or officers and their titles; number of persons employed, name 

and address of any subcontractors, and such similar information as may be 

necessary to make and complete the investigation. 

Examination of Certified Payrolls

◊ An examination of the contractor’s certified payrolls should be made for 

accuracy, completeness, and true representation of the facts. The examination 

should cover the current or most recent payrolls as well as those for selected 

periods which reflect the practice of the contractor or subcontractor during the 

life of the contract. 

 1. Check for completeness and accuracy of the payrolls as to the names, 

addresses, job classifications, hourly wage rates, daily and weekly hours 

worked during the payroll period, gross weekly wages earned, deductions 

made from wages, and net weekly wages paid the employee. Notice if there 

are distinctions made among the various classifications. 

 2. If the Contract Work Hours and Safety Standards Act is applicable and an 

employee worked in excess of forty hours in any workweek, determine 

whether time and a half the employee’s regular rate was paid. 

 3. Certified payrolls should be examined for discrepancies such as a 

disproportionate number of laborers, apprentices or helpers on the project. 

 4. The wage rates should be compared against those listed on the wage 

determination. If workers perform work in more than one classification, the 

payroll records should accurately reflect the time spent working in each. 

Unlisted classifications should be identified and additional classification 

procedures initiated, if applicable. 

 5. Check for contributions to fringe benefit plans. 

Examination of Records

◊ Examine the current or most recent payroll as well as those for selected periods 

which reflect the practice of the contractor or subcontractor during the life of the 

contract. The examination should include a review of the basic time cards, time 

sheets, or other work or personnel records of a representative number of 

employees in each classification. These records should be checked against the 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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certified payrolls in order to disclose any possible discrepancies, or to give 

reasonable assurance that none exist. 

◊ Examine documents which indicate that the firm has made contributions (or 

incurred costs) to fringe benefit plans. These documents might include: portions 

of the pension plan; documentation from the Internal Revenue Service that 

indicate the plan has been approved by the IRS; and records of contributions 

made.

Check for Compliance with Apprenticeship/Trainee Requirements

◊ Apprenticeship/trainee program information should be obtained and examined to 

verify that the program has been approved by the appropriate authority. If the 

contractor’s evidence is not sufficient, contact the Bureau of Apprenticeship and 

Training and/or the state apprenticeship council for verification. 

◊ Contracting officers must obtain copies of the individual employees’ 

apprentice/training registration forms for the file, as well as copies of the 

approved apprenticeship/training program itself. 

◊ The ratio of apprentices to journeyman on the project should not exceed the ratio 

provided for in the apprenticeship/training plan. The ratio is determined on a 

daily basis, not weekly. 

Determine if a Conformance is Necessary

◊ Determine if the wage determination contains classifications and wage rates for 

all the types of work performed on the contract. 

 1. If the applicable wage determination does not contain a classification for 

the work performed, the conformance procedure in 29 C.F.R. § 5 must be 

followed. Contracting agencies cannot arbitrarily determine a rate. 

 2. Questions as to whether or not a rate has been conformed should be 

coordinated with WHD. 

Employee Interviews

◊ Employee interviews are essential to the completeness of the investigation. 

 ◊◊ They should be sufficient in number to establish the degree of 

adequacy and accuracy of the records and the nature and extent of any 

violations. 

 ◊◊ They should also be representative of all classifications of employees 

on the project under investigation. 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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 ◊◊ In doubtful compliance situations interviews with former employees 

may be appropriate. 

 ◊◊ In cases involving alleged misclassification and/or falsification of 

payroll records, it is important to account, through the interview 

process, for as many employees as possible who worked on the 

contract. 

 ◊◊ Employees should be questioned regarding other employees they 

worked with and the duties performed by those employees. 

 ◊ Each employee should be informed that the information given is 

confidential, and that his/her identity will not be disclosed to the employer 

without the employee’s written permission. (See 29 C.F.R. § 5.6(a)(5)) 

◊ Place of interview 

 ◊◊ Employees currently employed may be interviewed during working 

hours on the job, in accordance with 29 C.F.R. § 5.5(a)(3)(ii), 

provided the interview can be properly and privately conducted on the 

premises. 

 ◊◊ In cases of falsification of records, fear of reprisals or intimidation, it 

may be more advisable to conduct the interview elsewhere, such as in 

the employee’s home, at the agency’s office, or other suitable place 

where it may be arranged. 

 ◊◊ Employees should not be interviewed in the presence of the employer, 

another employee, or any other person. 

◊ Telephone Interviews 

 ◊◊ Ordinarily, an interview should be made by telephone only if a 

personal interview is impracticable. When a telephone interview is 

used, it is suggested that the contracting officer send the employee the 

statement together with a request that the employee read the 

statement, make and initial any changes, sign and date it and return 

the statement to the contracting officer. It is suggested that the 

contracting officer keep a copy of the statement until the original is 

returned. 

◊ Mail interviews 

 ◊◊ Ordinarily, an interview should be made by mail only if a personal 

interview is impracticable. 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

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◊ Preparation of interview statements 

 ◊◊ When a written statement is taken, it should be recorded in the 

manner stated by the employee; it should be read by him/her, and 

contain a statement that it has been read and that it is correct. The 

contracting officer may restate or summarize the employee’s remarks, 

but should do so in the first person and should phrase it in the 

employee’s manner of speaking. 

 ◊◊ The statement should be signed by the employee and the signature, 

except in mail interviews, should be witnessed by the responsible 

agency official. In government contract cases, it is preferred that all 

interviews be signed. Where the statement is not signed, the 

contracting officer should give, either in the statement or his/her 

report, the employee’s reason for not signing. Any changes in a 

signed employee statement should be initialed by the employee. 

 ◊◊ Each interview statement should contain the following information: 

 1. Place and date of interview. 

 2. Name of employer (firm). 

 3. Name and permanent address of employee being interviewed. 

 4. Employment status (whether present or former employee). 

 5. Period(s) of employment 

 6. If an apprentice, the age, date of birth, and information 

concerning his status. 

 7. The statement should include specific information regarding: 

 ◊◊◊ rate(s) of pay and wages received 

 ◊◊◊ hour for starting/stopping work and daily/weekly 

hours worked 

 ◊◊◊ manner in which time and work are recorded 

 ◊◊◊ job classification(s) and exact work performed 

 In cases alleging misclassification, the interview statement must 

specifically address the various types of duties performed. It is 

not sufficient for an employee to only state he/she was a 

carpenter. The interview must state the specific carpentry 

duties, and the tools and materials used. If an employee worked 

in more than one classification, the employee must be asked 

how much time he/she spent in each classification. 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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 8. When possible, the interview statement should corroborate 

statements given by other employees. For example, the 

employee should be asked to identify other workers who 

performed the same work. 

 9. The interview should cover all the allegations of violations 

(particularly those in a complaint). 

 10. The interview should also cover any other details necessary to 

indicate accuracy of the employer’s records, statements, or 

certifications. 

 ◊◊ All interview statements must be legible.

Disclosure of Information to Employees

◊ The contracting officer should never give his/her opinion as to whether back 

wages are due. The contracting officer should never tell any employee the 

amount of back wages computed. 

Case Record

◊ Transcriptions of records and computations of back wages must be made when 

violations are found. 

Discharging DBA/DBRA Minimum Wage and Fringe Benefit Obligations

◊ “Prevailing wage” is made up of two interchangeable components -- basic hourly 

wages and fringe benefits. 

 1. Both may be paid in cash; 

 2. Payments can be made or costs incurred for “bona fide” fringe 

benefits; or 

 3. Any combination thereof. 

◊ Monetary wages paid in excess of the Davis-Bacon minimum wage may be used 

as an offset or credit to satisfy fringe benefit obligations, and vice versa. 

◊ Fringe benefits listed in the applicable Davis-Bacon wage determination must be 

paid for all hours worked -- both straight time and overtime hours. 

◊ Excess payments for overtime may not be offset/credited towards minimum 

wages due. 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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◊ Excess wages paid for work in one classification may not be offset/credited 

towards wage deficiencies in another classification. Under DBA/DBRA, each 

classification stands alone. 

Determining Compliance with CWHSSA

 See the “Compliance Principles” section of this resource book for a detailed overview 

of determining compliance with CWHSSA overtime pay requirements, where 

applicable. That discussion includes examples of how to assure that CWHSSA 

requirements are met. 

CWHSSA Liquidated Damages

◊ Liquidated damages are computed at $10.00 per day per employee for CWHSSA 

violations. 

◊ Although the contracting officer is required in all violation cases to compute 

liquidated damages, the decision on whether to assess the damages is made by the 

federal agency. (Liquidated damages in excess of $500 may be waived or 

adjusted only with the concurrence of WHD.) As a matter of administrative 

policy, liquidated damages are not computed for employees whose CWHSSA 

back wages are less than $20. 

 ◊◊ The contractor should be advised of the potential liquidated damages, 

and that they will be advised of the contracting agency’s 

determination concerning the assessment of liquidated damages. 

◊ Example: 

 M T W T F S S TOTAL

 REGULAR TIME 10 10 10 10 10 5 0 55

 In the above example, no overtime premium was paid. The 15 weekly 

overtime hours were worked on two calendar days, Friday and Saturday. 

Thus, $20.00 in CWHSSA liquidated damages would be computed. 

Overtime Requirements under the Fair Labor Standards Act, as amended

◊ CWHSSA requires the payment of an overtime premium only if the laborer or 

mechanic works in excess of 40 hours in a work week on covered contract(s). 

Overtime hours worked, which are not subject to CHWSSA, may be subject to 

FLSA overtime pay. . 

◊ Where questions arise concerning overtime pay obligations under the FLSA, 

referral to the local WHD office is appropriate. 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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CONCLUSION OF INVESTIGATION 

Final Conference Procedure

◊ Inform the contractor generally of the investigation findings, and indicate that 

these findings are based solely on the facts and information disclosed by the 

investigation. 

◊ Detail specifically what must be done to eliminate the violations, if any, and 

provide any available informational material such as copies of 29 C.F.R. § 3 

and/or 5. 

◊ Be willing to consider additional evidence from the contractor which may 

impact on the findings. For example, unresolved conformance request, evidence 

of fringe benefit plan, inspection reports. 

◊ Request for payment of back wages: 

 ◊◊ The DBA contains no injunctive action procedures. Therefore, a 

demand for the payment of the back wages must always be made 

even if the employer refuses to comply. 

 ◊◊ Contracting officers should accept partial back wage restitution for 

undisputed issues. 

 ◊◊ Contracting officers should attempt to collect back wages even 

though the case meets the debarment criteria. 

 ◊◊ If the employer is a subcontractor and refuses to make restitution, the 

prime contractor must then be requested to make restitution. The 

prime contractor is ultimately responsible for the payment of the 

back wages. 

◊ Notify the subcontractor and/or prime contractor of the potential for the 

assessment of liquidated damages ($10.00 per day per violation) under 

CWHSSA, but payment of liquidated damages is not requested from the 

contractor by the contracting officer. The firm(s) should be advised that the 

contracting agency will make a decision on the assessment of liquidated 

damages at a later date. 

◊ If there is no agreement to pay back wages, the file must be forwarded to WHD 

pursuant to 29 C.F.R. § 5.7 for review, collection of back wages, and debarment 

consideration (see All Agency Memorandum No. 182). 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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Withholding

◊ In refusal-to-pay cases under both DBA/DBRA and CWHSSA, the contracting 

agency shall withhold contract funds to cover the back wages due. 

◊ If funds remaining on the contract under which the violations occurred are 

insufficient to cover the back wages due, the contracting agency can withhold 

funds from other contracts subject to DBA/DBRA/CWHSSA or any other 

federal contract held by the same prime contractor – “cross-withholding”. 

◊ Contracting officers should immediately notify WHD if they become aware that 

the prime contractor may be filing bankruptcy. 

◊ In situations where WHD has instituted withholding actions, a letter to the prime 

contractor will describe the nature of the alleged violations and back wages found 

due. The prime contractor will have 15 days to provide written views on the 

alleged violations. Withholding procedures and the backwage disbursement 

process are discussed further in the “DBA/DBRA/CWHSSA WITHHOLDING” 

section of this reference book. 

Debarment 

◊ Debarment occurs when a contractor or subcontractor is declared ineligible 

(debarred) from receiving federal or federally assisted contracts for up to 3 

years because it was “in aggravated or willful violation of the labor standards 

provisions” of any of the related acts, or declared ineligible for 3 years because 

violations of the DBA were a disregard of the contractor’s “obligations to 

employees and subcontractors.” 

◊ At the conclusion of the investigation, the contracting officer may advise the 

contractor of the potential for debarment where appropriate, but make no 

statement to the contractor about any recommendation concerning debarment. 

◊ In no event should a contractor be left with the impression that payment of back 

wages eliminates the possibility of debarment. 

Debarment Criteria

◊ Practically, debarment is considered in those cases where the contractor has: 

 ◊◊ Submitted falsified certified payroll records 

 ◊◊ Required kickbacks of wages or back wages 

 ◊◊ Committed repeat DBA/DBRA violations 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

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Contracting Agency

◊ Investigations which appear to meet the debarment criteria – even in situations 

where the back wages have been paid – should be forwarded to WHD pursuant 

to All Agency Memorandum No. 182. 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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REPORT WRITING 

This is one of the most important aspects of the investigation. 

◊ The report is reviewed at many levels, both inside and outside the contracting 

agency. For example: 

 ◊◊ WHD 

 ◊◊ DOL’s Office of the Solicitor 

 ◊◊ The contracting agency 

 ◊◊ The Comptroller General. 

◊ Plan the report. 

◊ In the report, refer to exhibits included in the case file -- do not repeat 

interviews in the reports. 

◊ Avoid the use of abbreviations which may not be understood by other 

agencies. 

◊ Except under CWHSSA, in most jurisdictions there is no right of individual 

employee action in government contract statutes. The government acts on the 

employee’s behalf to recover back wages. Refusal-to-pay cases are usually 

resolved administratively by a hearing before a DOL Administrative Law 

Judge (ALJ). The ALJ process is time consuming and there is a delay before 

cases can be scheduled for hearings. 
U.S. DEPARTMENT OF LABOR DBA/DBRA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

19

THE HEARING PROCESS 

◊ Refusal-to-pay cases are resolved pursuant to 29 C.F.R. § 5.11. 

 ◊◊ If factual issues are in dispute, WHD notifies the contractors (both 

prime and sub) in writing of the investigation finding and offers the 

opportunity to request a hearing before an administrative law judge. 

 ◊◊ If only issues of law are in dispute, WHD offers the contractors the 

opportunity to appeal a WHD ruling before the Department’s ARB. 

◊ In both agreement-to-pay and refusal-to-pay cases where the debarment criteria 

are met, the contractors are offered a hearing before an ALJ pursuant to 29 

C.F.R. § 5.12 on the issue of debarment. 

◊ ALJ decisions may be appealed to the ARB. 

◊ The ARB hears all appeals of ALJ cases. The ARB, which acts on behalf of the 

Secretary of Labor, consists of members who serve at the pleasure of the 

Secretary. The ARB also acts on petitions for review of rulings issued by the 

WHD Administrator on coverage, interpretations, and wage determination 

matters.