A little planning can protect your company when the Department of Labor comes knocking
by Mark Douglas
July 19, 2016
  • Don’t pay any subcontractor unless the invoice (draw) includes the subcontractors’ (and lower-tier subs) payrolls.
  • You get subcontractor payrolls first. Take advantage of that. Spot-check payrolls for common errors and omissions. Require prompt correction of errors and timely submission of correcting documentation as a condition of any payout.
  • Institute regular communication/coordination between your jobsite and office staff.
  • Electronic payroll systems offer recordkeeping, streamlined payroll entry and submission and PW compliance review and corrections. The DOL encourages and sometimes requires contractors to use electronic payroll systems.

Be aggressive and be proactive. Don’t wait for a PW calamity to convince you that you need to protect yourself. You might think that being proactive will cost more, and you may be right. But consider this: how much more could a massive back wage assessment cost?