Contract Labor Requirements

At the preconstruction meeting, advise the contractor of their contract labor requirements and obligations:
  • All mechanics and laborers working on a TxDOT construction project must be paid at least once a week.
  • Mechanics and laborers must be paid at least the minimum prevailing wage as shown in the contract for the work classifications being performed (Mechanics and laborers performing in more than one classification must be paid at the rate specified for each classification for the time actually worked in each.)
  • The prevailing wage rates applicable to the contract must be posted at the project site
    (Bulletin Board)
     where they can easily be seen by all employees.
  • When the contract wage schedule does not include a job classification needed to complete the work on the contract, the contractor must submit
    Form CST-C-1
    , “Additional Classification and Wage Rate Request”, to the Construction Division (CST) for approval by emailing
    CST_LaborCompliance@txdot.gov
    .
  • Contractors must submit weekly certified payrolls listing the wages paid to each employee. Effective with projects let August 2017, contractors must use LCPTracker, the Department’s certified payroll system. The weekly certified payrolls must be submitted within 7 calendar days after the end of the payroll period. The chart “
    Subcontracting and Payroll Requirements
    ”(
    internal use only
    ) illustrates when payroll records are required and when a firm must be approved as subcontractor
    .
  • The Contractor is responsible to maintain all weekly certified payroll records and
     be retained for a period of 3 years from the contract completion date. These payroll records must be made available at all times for inspection by the Department, any authorized state governmental investigating or state auditing agency, and authorized representatives of the USDOL
    .
  • Only the following payroll deductions are permissible without prior approval from the USDOL (For more detailed information, please refer to
    29 CFR Part 3.5
    ).
    • Deductions made in compliance with federal, state or local law
      (
      i.e., federal or state withholding income taxes, and federal social security taxes)
    • Deductions of sums previously paid an employee (prepayment of wages), but only if such deduction is made without discount or interest
    • Deductions of amounts required by court order
    • Deductions authorized by the employee that constitute a contribution for the purpose of providing medical or hospital care; pensions or annuities on retirement; death benefits; or compensation for injuries, illness, accidents, sickness, or disability (or similar payments) for the benefit of the employee. These deductions are permissible provided they are not otherwise prohibited by law and are included in a bona fide collective bargaining agreement between the contractor and subcontractor and its employees or are pre-approved by the employee and serve the convenience or interest of the employee. In addition, the contractor and subcontractor may not profit from or otherwise receive benefits (e.g., commissions and dividends) for any employee payroll deductions.
    • Deductions contributing toward the purchase of U.S. Defense Stamps and Bonds when voluntarily authorized by the employee
    • Deductions requested by the employee to enable repayment of loans or to purchase shares in credit unions
    • Deductions voluntarily authorized by the employee for contributions to governmental or quasi-governmental agencies (e.g., American Red Cross
      )
    • Deductions voluntarily authorized by the employee for contributions to Community Chests, United Givers funds, and similar charitable organizations
    • Any deductions to pay regular union initiation fees and membership dues, provided that a collective bargaining agreement exists between the contractor and subcontractor and its employees, and the deductions are not otherwise prohibited by law
    • Deduction for the “reasonable cost” of reimbursement for board, lodging, or other facilities meeting the requirements of the FLSA (refer to
      29 CFR Part 531
      .)
    • Deduction for the cost of nominal value safety equipment (e.g., hard hats, safety shoes, safety glasses, and safety gloves), provided that such equipment is purchased by the employee as their own property for personal protection in work. This deduction is permissible provided the deduction is only for the actual cost of the safety equipment, and such deduction is provided for in a bona fide collective bargaining agreement between the contractor and subcontractor and its employees or voluntarily consented to by the employee in writing.
  • All payment of wages must be made by cash or negotiable instruments payable on demand.
  • Payments of fringe benefits are limited to those benefits as stated in the contract wage determination. Fringe benefits not included in the contract wage determination must be paid as an hourly cash equivalent.
  • Employees who work in excess of 40 hrs. in any given workweek must be paid at a rate of 1-1/2 times their regular rate for all hours worked in excess of 40 hrs. Such work hours are exclusive of payments made for non-work hours (such as vacation, holiday, or illness). For more complete information regarding the payment of overtime wages, please refer to
    29 CFR, Part 778
    .