CWHSSA Compliance Guide for Federal Construction Projects

Understanding the Contract Work Hours and Safety Standards Act (CWHSSA)

The Contract Work Hours and Safety Standards Act (CWHSSA) is one of the most misunderstood federal labor laws. While it’s often discussed in conjunction with the Davis-Bacon Act, CWHSSA specifically governs overtime pay and safety standards for laborers and mechanics on certain federally funded or assisted construction projects. If your public works project involves federal funding and contracts over $100,000, CWHSSA likely applies — and noncompliance can lead to serious penalties.

When Does CWHSSA Apply?

CWHSSA applies to:

• Contracts over $100,000

• Federally funded or assisted construction, alteration, or repair work

• Projects involving laborers and mechanics

This includes:

• Road construction

• Public housing projects

• Schools and municipal buildings

• Infrastructure projects with federal funds

Pro tip: If your contract meets these criteria, you’re responsible for following CWHSSA — and making sure your subs do too.

CWHSSA Requirements – What You Must Do

Under CWHSSA:

• Employees must be paid time-and-a-half for all hours worked over 40 hours in a workweek.

• Accurate daily and weekly time records must be maintained.

• The employer must post the official “Notice to All Employees” (WH-1321) at the jobsite.

• Wages and overtime must be reported accurately on certified payroll reports (Form WH-347 or equivalent).

Failure to meet these requirements can result in:

• Liquidated damages of $10/day per affected employee

• Withholding of contract funds

• Possible debarment from future federal projects

Real-World Examples of Violations

Many contractors unintentionally violate CWHSSA. Here’s how:

• Example 1: A subcontractor pays overtime at 1.5x base pay but omits fringe benefits from the calculation, resulting in underpayment.

• Example 2: A prime contractor fails to audit subs’ timecards, leading to inconsistent overtime tracking and missed violations.

• Example 3: A foreman is misclassified as exempt, even though they spend over 50% of their time doing manual labor, and overtime was never paid.

Who Needs to Follow CWHSSA? (Including Tiered Subs)

If you’re a prime contractor, you’re on the hook for compliance — but so is every subcontractor you hire. And it doesn’t stop there. Even if a subcontractor hires another subcontractor (sometimes called a second-tier or third-tier sub), they must follow the CWHSSA rules too.

That means:

• Everyone involved — from the top all the way down — must track hours and pay overtime properly.

• If someone down the chain messes up, you (the prime contractor) could still be held responsible.

Example:

Imagine you’re working on a federally funded school project. You hire a painting company. That company hires a temp agency to bring in extra workers. If that agency doesn’t pay overtime or keep good records, the Department of Labor could come after you and the painting company, even if you didn’t know there was a problem.

This is why it’s so important to:

• Let every subcontractor know they have to follow federal labor rules

• Put CWHSSA requirements in all your subcontracts

• Check in regularly and audit their certified payrolls

Best Practices for CWHSSA Compliance

1. Centralize Timekeeping Systems

Use a digital platform or unified timecard process across all tiers of contractors. This ensures accurate and traceable records.

2. Regularly Audit Certified Payroll

Perform quarterly or monthly internal audits to catch mistakes before they escalate. Look for discrepancies in:

• Overtime calculations

• Fringe benefit application

• Work classification assignments

3. Train Supervisors & Payroll Staff

Don’t assume HR or payroll personnel understand federal labor rules. Provide regular training on:

• CWHSSA vs Davis-Bacon

• Overtime requirements

• How to fill out and verify WH-347 forms

4. Include Subcontractor Oversight in Contracts

Ensure subcontract agreements require full compliance with CWHSSA and Davis-Bacon, including audit cooperation.

How CWHSSA Interacts with Davis-Bacon

Many people get confused because CWHSSA and the Davis-Bacon Act often apply to the same projects — but they don’t cover the same things. Think of them like a team of two: one handles base wages, and the other handles overtime and safety.

Here’s a simple breakdown:

• Davis-Bacon Act covers prevailing wage requirements, meaning you must pay workers at least the locally required minimum wage for their job classification. This applies to federal contracts worth over $2,000.

• CWHSSA covers overtime and safety standards. It requires workers to be paid time and a half for any hours worked beyond 40 a week and ensures certain job site safety protections. This law applies to contracts worth over $100,000.

So What Does That Mean in Real Life?

Let’s say you’re working on a public school project worth $250,000. That means both laws apply:

• Davis-Bacon: You must pay workers at least the prevailing wage (for example, $62.37/hour for an Electrician in LA County).

• CWHSSA: Any hours over 40 per week must be paid at time-and-a-half of the full rate, including fringe benefits.

So if someone works 50 hours:

• First 40 hours = $62.37/hour

• Last 10 hours = $93.56/hour (1.5x the full rate)

You Can't Pick One or the Other

When both laws apply, you must follow both at the same time:

• Don’t skip overtime pay — that’s a CWHSSA violation.

• Don’t underpay the hourly rate — that’s a Davis-Bacon violation.

• Don’t forget: subcontractors also have to follow these rules, no matter how far removed they are.

Common Mistakes to Avoid

• Paying overtime based on base rate only (leaving out fringe)

• Thinking Davis-Bacon includes overtime (it doesn’t — that’s CWHSSA)

• Not checking if both laws apply because the contract is “just a sub”

Want to understand the Davis-Bacon Act in more detail? Check out our full guide: Davis-Bacon: Understanding Prevailing Wage

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What If You're Out of Compliance?

If DOL or a Contracting Agency finds violations:

• They may demand back wages and assess liquidated damages.

• Funds may be withheld from payment to the contractor.

• The firm could be debarred from future federal projects for up to 3 years.

If you receive a request for records or a CWHSSA investigation notice — don’t wait. Contact a compliance consultant or legal expert immediately.

Get Help from Industry Experts

Davis Bacon Solutions helps contractors across California ensure full CWHSSA and Davis-Bacon compliance through:

• On-site and remote payroll audits

• Certified payroll reviews

• Worker classification assessments

• Contractor and subcontractor training

Schedule a free consultation to protect your contracts and stay compliant.