Pennsylvania Certified Payroll Requirements: How the PA Prevailing Wage Act Differs From Davis-Bacon, and What That Means for Your Payroll

Contractors who work under federal Davis-Bacon often assume Pennsylvania's prevailing wage requirements follow the same framework. The forms are different. The threshold is different. The way wage rates are determined is different. And the submission process routes certified payroll to the awarding body rather than a centralized state portal, which creates compliance obligations that depend on the specific public entity awarding the contract.

For specialty trade contractors bidding on Pennsylvania public works, understanding how PA Act 442 works independently from Davis-Bacon, where the two overlap on dual-funded projects, and what the DLI expects from certified payroll documentation prevents the kind of errors that trigger investigations and debarment.

How Pennsylvania's Prevailing Wage Act Differs From Federal Davis-Bacon

The ​Pennsylvania Prevailing Wage Act (Act of 1961, P.L. 987, No. 442) requires contractors and subcontractors on qualifying public works projects to pay prevailing wage rates as determined by the Pennsylvania Department of Labor and Industry (DLI). The Bureau of Labor Law Compliance within DLI administers the law, issues wage determinations, investigates complaints, conducts routine inspections, and prosecutes violations.

While both PA Act 442 and federal Davis-Bacon require prevailing wages on publicly funded construction, the two frameworks differ in several important areas that directly affect how contractors set up payroll, file reports, and retain records.

Who Must Comply and What Triggers Coverage

Pennsylvania prevailing wage requirements apply to construction, reconstruction, demolition, alteration, and repair work (not including maintenance) on public works projects where the total estimated cost exceeds $25,000. A project cannot be divided into components or separate contracts to fall below the threshold.

The ​$25,000 threshold is significantly higher than the federal Davis-Bacon minimum of $2,000. A project that falls below $25,000 is not covered under Act 442 even if it uses public funds. However, on dual-funded projects where both federal and state dollars are involved, contractors must comply with both sets of rules and pay whichever rate is higher for each classification.

Pennsylvania also requires E-Verify enrollment under Act 127 of 2012. Every contractor and subcontractor performing public works must verify the employment eligibility of all new hires assigned to the project through the federal E-Verify system, a requirement that does not exist under Davis-Bacon.

How DLI Sets Wage Rates by Locality

One of the most significant differences from Davis-Bacon is how Pennsylvania determines prevailing wage rates. Federal rates are published on SAM.gov and can be looked up by county and trade classification. Pennsylvania does not publish a statewide annual rate book. DLI issues wage determinations on a project-by-project basis, based on the locality (political subdivision or combination of subdivisions) where the work is performed.

Rates vary not just by county but by political subdivision within a county. When no workers of a particular classification are employed in the immediate locality, DLI may extend the locality to include adjoining political subdivisions. The Bureau considers collective bargaining agreements and other data types when setting rates.

Contractors must obtain the applicable DLI wage determination for each individual project before bidding. Rates from a previous project, even one in the same county, cannot be assumed to apply to a new project. The ​awarding body is required to obtain the wage determination from DLI and include it in the bid specifications. Contractors should verify that this information is present in bid documents, though its absence does not eliminate the obligation to pay prevailing wages.

What the LLC-25 Certified Payroll Form Requires

Pennsylvania uses Form LLC-25 (Weekly Payroll Certification for Public Works Projects) rather than the federal WH-347. The LLC-25 captures the same core data but follows a different format and includes state-specific certification language.

Each LLC-25 submission must include:

• Worker name, trade classification, and actual hourly rate paid (including fringe benefits)

• Hours worked each day on the public works project

• Gross wages earned on the covered project

• Itemized deductions (taxes, union dues, garnishments, authorized deductions)

• Fringe benefit contributions by type (health, pension, vacation, training)

• A signed certification that all workers were paid at least the applicable prevailing wage

Workers must be classified based on the actual duties performed, not job titles. A laborer who performs tasks reserved for a higher-paid trade classification, even briefly, must be paid the higher prevailing wage for that time. Misclassification is one of the most frequently cited violations in DLI investigations and a common trigger for enforcement actions.

A ​construction payroll system that applies PA prevailing wage rates by classification and project, generates LLC-25-compliant reports, and tracks worker classifications against actual duties performed reduces the manual effort and the misclassification risk that comes with building certified payroll from spreadsheets.

Submission, Notarization, and Recordkeeping Rules

Pennsylvania certified payroll submission differs from California and New York in one critical way: there is no centralized state electronic portal. Contractors submit weekly certified payroll records directly to the awarding body (the public entity that awarded the contract) as a condition of payment. The awarding body is responsible for reviewing the submissions and verifying that prevailing wages were paid before releasing payment.

Key submission and recordkeeping requirements:

• Weekly filing: Certified payrolls must be submitted weekly to the awarding body

• Notarization: The LLC-25 must be notarized on the first and last submissions for each project

• Record retention: Under Act 442 Section 6, payroll records must be preserved for at least two years from the date of payment. Records must be open at all reasonable hours to inspection by the awarding body and DLI

• Jobsite posting: Applicable prevailing wage rates must be posted in a prominent, accessible location at the work site for the duration of the project

• Falsification: Falsification of certified payroll records is prosecutable as a criminal misdemeanor in Pennsylvania

Because submission goes to the awarding body rather than a state portal, the format requirements and submission procedures can vary by agency. Contractors working across multiple public entities should confirm each agency's preferred format and submission method before the first filing. When ​field time data feeds directly into ​certified payroll generation, the data is consistent regardless of which agency receives the report.

Penalties for Non-Compliance

The ​DLI enforces Act 442 through a penalty structure that escalates with severity and intent. Common violations that trigger enforcement include misclassifying workers to avoid higher wage rates, using preset ratios of craft and laborer work instead of paying for actual duties performed, failing to provide records to investigators, and paying workers at training program rates without a registered apprenticeship program.

Penalties for intentional violations include:

• Debarment: Three-year prohibition from bidding on or being awarded Pennsylvania public works contracts. Debarred contractors and any firm in which they have an interest are published on a public debarment list.

• Back wages: Full payment of prevailing wages owed to affected workers

• Liquidated damages: DLI may refer cases to the Attorney General for additional damages

• Criminal prosecution: Willful falsification of certified payroll records can be prosecuted as a misdemeanor

How to Manage PA Prevailing Wage Across Multiple Projects

For trade contractors running multiple Pennsylvania public works projects simultaneously, the locality-based rate determination system creates a unique challenge. Rates can differ between projects in the same county, and each project has its own wage determination that must be applied independently.

Managing that complexity manually, through separate spreadsheets for each project's rate schedule, is where classification errors and rate mismatches originate. A ​construction payroll platform that tracks prevailing wage rates by project and classification, calculates fringe benefit credits against the applicable determination, and generates ​LLC-25 reports from the same data used to process paychecks consolidates the compliance workflow into a single system. When ​field hours feed into that system with worker classifications already attached, certified payroll reflects actual work performed rather than office estimates.

Handle PA Prevailing Wage in the Same System That Runs Payroll

Trayd processes prevailing wage calculations, fringe benefit tracking, and ​certified payroll generation for trade contractors on regulated projects. When field hours, classifications, and project-specific wage determinations are managed in one platform, the data behind each LLC-25 matches the data behind each paycheck. ​Schedule a demo to see how PA compliance works alongside everything else.

Frequently Asked Questions

What is the contract threshold for Pennsylvania prevailing wage?

Public works projects with a total estimated cost exceeding $25,000 require prevailing wage under PA Act 442. Projects cannot be divided into components to fall below the threshold. Maintenance work is excluded from coverage.

What form does Pennsylvania use for certified payroll?

Pennsylvania uses Form LLC-25 (Weekly Payroll Certification for Public Works Projects), not the federal WH-347. The LLC-25 must be submitted weekly to the awarding body and notarized on the first and last submissions for each project.

How are prevailing wage rates determined in Pennsylvania?

DLI issues wage determinations on a project-by-project basis based on the locality (political subdivision) where work is performed. Rates are not published in an annual statewide rate book. Contractors must obtain the applicable determination directly from DLI or the bid specifications for each project.

How long must contractors retain certified payroll records in Pennsylvania?

Under Act 442 Section 6, payroll records must be preserved for at least two years from the date of payment. Records must be available for inspection by the awarding body and DLI at all reasonable hours.

What happens if a contractor is found in violation of the PA Prevailing Wage Act?

Intentional violations result in three-year debarment from Pennsylvania public works, payment of all prevailing wages owed, and potential referral to the Attorney General for liquidated damages. Falsification of certified payroll is prosecutable as a criminal misdemeanor.

Does Pennsylvania require electronic certified payroll submission like California or New York?

No. Pennsylvania does not operate a centralized state electronic portal. Certified payrolls are submitted weekly to the awarding body (the public entity that awarded the contract) as a condition of payment. Format and submission procedures may vary by agency.

References

• Pennsylvania General Assembly. "Pennsylvania Prevailing Wage Act, Act of 1961, P.L. 987, No. 442." ​legis.state.pa.us

• Pennsylvania Department of Labor and Industry. "Prevailing Wage." ​pa.gov

• Pennsylvania Department of Labor and Industry. "Prevailing Wage Projects." ​pa.gov

• Pennsylvania Department of Labor and Industry. "Prevailing Wage FAQs." ​pa.gov