Definition of a Statement of Compliance

By Kimberly Walker
A statement of compliance ensure laborers are being paid the prevailing wage rate.

michaeljung/iStock/Getty Images

A statement of compliance certifies all laborers and mechanics employed by a contractor and subcontractor on projects funded by the federal government are being paid the prevailing wage rate, including fringe benefits, for similar area projects as determined under the Davis-Bacon Act.

Davis-Bacon Act

The Davis-Bacon Act authorizes the Department of Labor to determine the prevailing wage rate contractors and subcontractors must pay their laborers and mechanics working on government funded construction projects or District of Columbia contracts in excess of $2,000.

Payroll Records

The contractor or subcontractor must keep payroll records indicating the amount of wages and any fringe benefits paid to laborers and mechanics under the Davis-Bacon Act.

Fringe Benefits

Fringe benefits may be paid by the contractor or subcontractor either directly to the laborer, to an approved plan or fund, or a combination of both. Funded plans are not part of the contractor's business and are administered by third parties or trustees. Non-funded plans are part of the contractor's business such as a vacation fund.

About the Author

With an obsession for holistic skin care, Kimberly Walker is a content creator focusing on beauty and wellness. With eight years of editorial and copywriting experience, she's contributed to EBONY, Uptown, AOL, BET.com, and brands such as Jane Carter Solutions, Elasta QP, curlBOX, Azure Professional and more. Walker is also an accomplished screenwriter with a project currently on Netflix.

Cite this Article A tool to create a citation to reference this article Cite this Article