How long to keep certified payroll records on Davis-Bacon jobs

On a federal Davis-Bacon job, keep your certified payrolls and the records behind them during the work and for at least three years after all work on the prime contract is finished. That comes from 29 CFR 5.5(a)(3), the clause that goes into covered contracts. The clock starts when the whole prime contract is done, not when your own scope ends. For a subcontractor on a long project, that can mean holding files for years.

What does the three-year rule actually cover?

The rule names several kinds of records. Each one has the same retention period under 29 CFR 5.5(a)(3):

Basic payroll records for every worker on covered work.
Weekly certified payrolls, including the signed statement of compliance.
The contract or subcontract and related documents, such as bids, proposals, amendments, modifications and extensions.
Fringe benefit plan records, if you count planned benefit costs toward the required fringe amount.
Apprenticeship records, if you use apprentices.

Contractors often keep the form and forget the rest. The form is only the summary. The records are what back it up.

What must the basic records show?

Under 29 CFR 5.5(a)(3)(i), the basic records for each laborer and mechanic include:

Name and Social Security number
Last known address, telephone number and email address
Job classification or classifications
Hourly wage and fringe rates paid
Daily and weekly hours worked, in total and on each covered contract
Deductions
Actual wages paid

Note the difference between what you keep and what you send. The regulation says full Social Security numbers and full contact details must not be included on the weekly transmittals. Each worker gets an identifying number instead, such as the last four digits of the Social Security number. The prime contractor may still require full information from subcontractors for its own records. Ask your prime what it wants.

What extra records do fringes and apprentices need?

The same section adds two special files.

Fringe benefit plans. If your wage figures include anticipated fringe benefit costs, you must keep records showing that the commitment to provide the benefit is enforceable and the plan is financially responsible. The records must also show the plan was communicated in writing to affected workers, along with the anticipated or actual costs. Our guide to Davis-Bacon fringe benefits explains how plan costs become an hourly credit.

Apprentices. If you have apprentices working under approved programs, you must keep written evidence of the registration of the apprenticeship program and of each apprentice, plus the ratios and wage rates that apply. A report that lists an apprentice with no registration on file is an easy item for an auditor to question.

Who can ask to see the records?

29 CFR 5.5(a)(3)(iv) says contractors must make the required records available for inspection, copying or transcription by the contracting agency or the Department of Labor. Their representatives may also interview workers during working hours on the job.

So the file has to be something you can hand over, not a pile of paper in three offices. If a request arrives two years after the job, the person who ran payroll may be gone.

What happens if records are missing?

29 CFR 5.5(a)(3) lists the consequences when a contractor does not submit weekly payrolls or does not make records available. After written notice, the agency may suspend further payment, advance or guarantee of funds. Failure to submit or provide records may also be grounds for debarment. And a contractor that does not produce records may be precluded from introducing them as evidence in an administrative proceeding.

The regulation also warns that false certifications may lead to civil or criminal prosecution under 18 U.S.C. 1001 and 31 U.S.C. 3729. That is why the signed statement of compliance matters. Our post on how to fill out a WH-347 covers that form line by line.

Electronic submission. The regulation permits electronic submission systems that use legally valid electronic signatures. The system must also let the contractor, the agency and the Department of Labor reach the payrolls for at least three years after the prime contract work is complete. If your records live in a vendor’s portal, ask what happens to access if you stop paying for it.

Do state jobs use the same period?

Not always. The three-year period above is the federal rule for Davis-Bacon contracts. State prevailing wage laws set their own record rules, and a job can fall under both. Read the contract and the state agency’s guidance, and keep the longer period. For the differences, see state prevailing wage vs Davis-Bacon and the post on California DIR certified payroll.

A simple filing checklist

Note the date the prime contract work is completed, and set a destroy-no-earlier-than date three years later. Ask your prime how it will tell you.
File each week’s certified payroll with the timecards, pay records and deduction records it came from.
Store the subcontract, change orders and amendments with the payroll file.
Keep fringe plan documents and apprentice registrations in the same job folder.
Keep the full worker details for your own files, and send only what the transmittal rules allow.
Test that you can pull a full job file within a day.

Where Payrung fits

Payrung is being built to turn your payroll export into submission-ready certified payroll and keep each week’s report tied to the data it came from. It is not built yet. Join the waitlist.

This article is general information, not legal or tax advice. Record rules vary by contract and by state, so check your contract and talk with a qualified professional.