---
title: North Carolina Certified Payroll: NCDOT Rules | WellStanding
url: https://wellstanding.com/guides/north-carolina-certified-payroll/
description: NC sets no state prevailing wage rates and no state payroll form was found. See NCDOT's weekly payroll rules, FAP-2 notices and estimate holds.
updated: 2026-11-05
type: guide
publisher: WellStanding Certified Payroll
---
# North Carolina certified payroll: what NCDOT requires and what a missing payroll costs

This page rests on NCDOT's [Construction Manual section 107-22](https://connect.ncdot.gov/projects/construction/Pages/ConstMan.aspx?Method=CM-01-107), its federal-aid [provision file Z008](https://connect.ncdot.gov/resources/Specifications/2024StandardProvisions/Z008.docx) (FHWA-1273 revised June 25, 2026, listed as Z-8 on NCDOT's [federally funded municipal checklist](https://connect.ncdot.gov/municipalities/Bid%20Proposals%20for%20LGA%20Content/01%20Federally%20Funded%20Projects.pdf)), its [training slides](https://connect.ncdot.gov/projects/construction/Structural%20Design%20AGCDOT%20Joint%20Bridge%20Design%20Commi/Technical%20Training%20-%20Certified%20Payroll%20Training.pdf) and the [NC Department of Labor's prevailing wage page](https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/prevailing-wage-rates). The manual, the slides and the NCDOL page show no date; all were read on November 4 or 5, 2026.

Last reviewed November 5, 2026 against the sources it cites

The short answer

The NC Department of Labor says North Carolina has no state-level prevailing wage rates, and no state payroll form was found. On federal-aid highway work, NCDOT's contract requires weekly payrolls to the contracting agency and makes the prime responsible for submitting its subs' payrolls. NCDOT's manual routes them up through the prime to the Resident Engineer. A missing payroll can hold the next monthly estimate.

- The [NC Department of Labor](https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/prevailing-wage-rates) says North Carolina does not have prevailing wage rates at the state level and refers wage questions to the U.S. Department of Labor's Wage and Hour Division offices in Charlotte and Raleigh.
- NCDOT's contract [provision file Z008](https://connect.ncdot.gov/resources/Specifications/2024StandardProvisions/Z008.docx), which its [federally funded municipal checklist](https://connect.ncdot.gov/municipalities/Bid%20Proposals%20for%20LGA%20Content/01%20Federally%20Funded%20Projects.pdf) lists as Z-8 for FHWA 1273, requires each contractor and subcontractor to submit certified payrolls weekly for each week with covered work and makes the prime responsible for submitting all of its subcontractors' certified payrolls.
- [Construction Manual section 107-22](https://connect.ncdot.gov/projects/construction/Pages/ConstMan.aspx?Method=CM-01-107) has a second-tier subcontractor send its payroll to the first tier, and the first tier send it to the prime, which checks it and furnishes it to the Resident Engineer.
- When a payroll for a week with work is missing, the [manual](https://connect.ncdot.gov/projects/construction/Pages/ConstMan.aspx?Method=CM-01-107) says money due on the next monthly partial estimate may be withheld, and just the subcontractor's portion when the missing payroll is a subcontractor's.
- NCDOT's [FAP-2 example letter](https://connect.ncdot.gov/projects/construction/ConstManRefDocs/Form%20FAP-2.pdf) asks you to investigate and report, and if a worker was underpaid, to pay what is owed, prepare a corrected payroll, send a detailed letter of explanation, and send evidence of payment.
- NCDOT's [training slides](https://connect.ncdot.gov/projects/construction/Structural%20Design%20AGCDOT%20Joint%20Bridge%20Design%20Commi/Technical%20Training%20-%20Certified%20Payroll%20Training.pdf) say other withholding avenues can be pursued after a project closes, and that failure to comply can lead to removal from NCDOT's bidder list.

## Does North Carolina require certified payroll?

The NC Department of Labor says [North Carolina does not have prevailing wage rates at the state level](https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/prevailing-wage-rates). No state payroll form or filing portal turned up in the NCDOL or NCDOT pages read, and ncleg.gov refused the fetch, so the General Statutes were not read. Compare other states in the [state table](https://wellstanding.com/guides/certified-payroll-requirements-by-state/).

On NCDOT work, certified payroll comes with federal-aid highway money. [Z-8](https://connect.ncdot.gov/resources/Specifications/2024StandardProvisions/Z008.docx) applies its Davis-Bacon section to federal-aid construction over $2,000 on federal-aid highways and to every subcontract, whatever its size. The weekly payroll duty comes from the Davis-Bacon clauses in [29 CFR 5.5](https://www.ecfr.gov/current/title-29/subtitle-A/part-5/section-5.5), not from the form being attached: Z-8's first paragraph says the June 10, 2026 rule made use of Form FHWA-1273 optional for the contracting agency, which must still ensure compliance (see [what changed in FHWA-1273 in 2026](https://wellstanding.com/guides/fhwa-1273-changes-2026/)).

Z-8 excludes local roads and rural minor collectors, but where applicable law requires a project to be treated as a Federal-aid highway project, its Davis-Bacon section applies wherever the project sits. The [manual](https://connect.ncdot.gov/projects/construction/Pages/ConstMan.aspx?Method=CM-01-107) says a contract with no payroll duty carries a special provision titled "Submission of Records- Federal-Aid Projects." Before you assume it covers a local-road job, ask the Resident Engineer (RE) or the owner whether the project is treated as Federal-aid.

## Which rule applies to which owner

| Owner and money | What the sources say |
| --- | --- |
| NCDOT federal-aid highway contract | Weekly payroll under Z-8, routed through the prime to the RE under the manual. The wage decision is one of six, Z-86 to Z-91, in NCDOT's [county chart as of 1-1-2024](https://connect.ncdot.gov/municipalities/Bid%20Proposals%20for%20LGA%20Content/04%20Davis-Bacon%20Wage%20Rates%20(Federal).pdf). |
| Federally funded municipal job | NCDOT's [January 1, 2024 federally funded checklist](https://connect.ncdot.gov/municipalities/Bid%20Proposals%20for%20LGA%20Content/01%20Federally%20Funded%20Projects.pdf) lists Z-8 and the wage tables but names no reviewer. Among its optional provisions it also lists SP1 G103, "Submission of Records," marked as applying to certain funding sources. Ask the municipality where payroll goes and whether G103 is in your contract. |
| State-funded NCDOT or municipal job | NCDOT's [January 1, 2024 state-funded checklist](https://connect.ncdot.gov/municipalities/Bid%20Proposals%20for%20LGA%20Content/02%20State%20Funded%20Projects.pdf) lists no FHWA-1273 provision and no wage tables. But NCDOT's [January 2024 Standard Specifications](https://connect.ncdot.gov/resources/Specifications/2024StandardSpecifications/2024%20Standard%20Specifications%20for%20Roads%20and%20Structures.pdf), Subarticle 109-3(A), track force-account overtime by weekly payrolls "as requested on all other projects," and failing to submit them bars that overtime. Check whether your contract incorporates them. |

## How payroll moves on an NCDOT job

1. **Send it up one tier at a time.** The manual has a second-tier subcontractor send its payroll to the first tier, and the first tier send it to the prime, which checks it and furnishes it to the RE. Z-8 makes the prime responsible for submitting all of its subcontractors' certified payrolls. The manual also requires a sub's payroll to show "(Name), Subcontractor for (Name), Prime Contractor," and a second-tier sub's to show "(Name), Second Tier Subcontractor for (Name), Prime Contractor."
2. **Submit weekly for weeks with work, each with a signed Statement of Compliance.** Z-8 requires a payroll for each week with covered work, and the manual wants the statement on each payroll, supplemental ones included.
3. **Watch the 7 days.** The training slides say within 7 days of the payroll date, while [29 CFR 3.4(a)](https://www.ecfr.gov/current/title-29/subtitle-A/part-3/section-3.4) counts from the regular payment date of the payroll period. Ask the RE which date NCDOT counts from.
4. **Match your contract's wage decision.** If a classification is missing, the manual has the contractor write the RE or complete Form SF-1444, and the slides say an approval covers that contract alone. See our [SF-1444 guide](https://wellstanding.com/guides/sf-1444-additional-classification/).

## What the Resident Engineer checks (FAP-1)

FAP-1 is NCDOT's own [Summary of Payrolls](https://connect.ncdot.gov/projects/construction/ConstManRefDocs/Form%20FAP-1.pdf), not a form you submit. The RE's office fills it in weekly from the daily diaries. Per the manual, the RE inspects each contractor's first payroll thoroughly, and each next one until a payroll is correct. After that the RE may limit checking to the wages of at least two randomly selected employees per weekly payroll, plus a thorough inspection of each contractor's payrolls for at least one week each quarter.

## If you get a FAP-2 notice

The manual has the RE tell the prime of an error by phone, email or letter, copying the sub if the error is a sub's. [FAP-2](https://connect.ncdot.gov/projects/construction/ConstManRefDocs/Form%20FAP-2.pdf) is NCDOT's example letter, with the subject Wage Violation. It asks you to investigate and report, and if a worker was underpaid, to:

1. Pay what is owed.
2. Prepare a corrected payroll.
3. Explain in a letter, in detail, why it happened and what you changed to prevent a repeat.
4. Send the corrected payroll, the letter and evidence of payment, such as a canceled check or an employee's signed statement.

The manual says the Department does not correct or amend the payroll information you provide.

## When the Resident Engineer holds your estimate

If a payroll is missing for a week with work, the engineer contacts the prime. If it still does not arrive, money due on the next monthly partial estimate may be withheld, or just the sub's portion when the missing payroll is a sub's. If payrolls are still missing after a withholding, the manual has the engineer contact the Construction Unit for help.

The slides say estimates should be held if a contractor is not providing a response or if payrolls are not received in a timely manner. The manual says payrolls are to be received for the period "four weeks in advance of the period payment being made." The slides add that a prime's failure to obtain and submit all required payrolls, or nonconforming payrolls, should result in withholding of estimate payments and/or retainage, that other withholding avenues remain after a project closes, and that failure to comply can lead to removal from NCDOT's bidder list. [Z-8](https://connect.ncdot.gov/resources/Specifications/2024StandardProvisions/Z008.docx) separately makes failure to submit the required records on request a ground for debarment under [29 CFR 5.12](https://www.ecfr.gov/current/title-29/subtitle-A/part-5/section-5.12).

Z-8 also sets the contract-level rule. If a contractor fails to submit the required records, the contracting agency may, on its own initiative and after written notice to the contractor, suspend further payment, advance or guarantee of funds until the violations have ceased. The manual and slides do not describe the release steps. First, get the missing weeks, each with a signed Statement of Compliance, to your prime and ask the RE what else is outstanding.

## Is there an electronic payroll system?

NCDOT's manual lets a contractor elect to submit certified payrolls electronically, with all required information and a signed Statement of Compliance. No statewide system is named: NCDOT's [E-Certified Payroll](https://connect.ncdot.gov/projects/construction/E-Certified-Payroll/Pages/default.aspx) page had no body text on November 5, 2026, and NCDOT's [2024 workshop slides](https://connect.ncdot.gov/projects/construction/Structural%20Design%20AGCDOT%20Joint%20Bridge%20Design%20Commi/2024%20AGC-NCDOT%20Workshop_Contract%20Admin.pdf) said it was setting up AASHTOWare Civil Rights and Labor, with a 2025 pilot.

Z-8 says an agency or prime that requires an electronic system must require a legally valid electronic signature and permit other methods where a contractor cannot use it. See our [AASHTOWare CRL guide](https://wellstanding.com/guides/aashtoware-civil-rights-labor-certified-payroll/) for how such DOT systems work.

## Who signs the Statement of Compliance, and how

The manual wants it signed by the contractor, the subcontractor or an agent who pays or supervises payment of the workers, and under Z-8 the WH-347 certification satisfies it. See our [WH-347 guide](https://wellstanding.com/guides/wh-347/).

The sources conflict on e-signatures. The training slides call for a Statement of Compliance with "an original signature of the owner/company official." Z-8 and [29 CFR 5.5(a)(3)(ii)(E)](https://www.ecfr.gov/current/title-29/subtitle-A/part-5/section-5.5) both say the signature "must be an original handwritten signature or a legally valid electronic signature," so the contract text accepts a legally valid e-signature. If your subcontract or the RE requires an original, ask the RE before sending an e-signed statement.

We prepare certified payroll for public works contractors. Tell us about your project.

## Questions

**Do I send certified payroll on a state-funded NCDOT or city job with no federal money?**

No certified payroll requirement was found for state-funded work, apart from the force-account overtime rule in [Subarticle 109-3(A)](https://connect.ncdot.gov/resources/Specifications/2024StandardSpecifications/2024%20Standard%20Specifications%20for%20Roads%20and%20Structures.pdf) of NCDOT's Standard Specifications. Your contract controls.

**Can I use the WH-347 or my own payroll form?**

Either. Z-8 says the weekly payroll information may be submitted on the WH-347 or in any other format, with a Statement of Compliance attached. Whichever form you use, the manual's prime and sub label line in step 1 applies.

**Do I send a payroll for a week with no work?**

No. The manual says none is needed for a stretch of a week or longer with no work.

**Do I still submit the annual FHWA-1391 report?**

Section 107-22 still lists it, but NCDOT's [e-1391 page](https://connect.ncdot.gov/business/SmallBusiness/Pages/ncdote1391.aspx) carries a 2026 notice that FHWA is not requiring the 2026 Annual EEO Report and NCDOT will not collect FHWA-1391 data on federal-aid contracts.

## Sources

Every figure on this page links to its source where it first appears. The full list, in order:

1. [Construction Manual section 107-22](https://connect.ncdot.gov/projects/construction/Pages/ConstMan.aspx?Method=CM-01-107) connect.ncdot.gov
2. [provision file Z008](https://connect.ncdot.gov/resources/Specifications/2024StandardProvisions/Z008.docx) connect.ncdot.gov
3. [federally funded municipal checklist](https://connect.ncdot.gov/municipalities/Bid%20Proposals%20for%20LGA%20Content/01%20Federally%20Funded%20Projects.pdf) connect.ncdot.gov
4. [training slides](https://connect.ncdot.gov/projects/construction/Structural%20Design%20AGCDOT%20Joint%20Bridge%20Design%20Commi/Technical%20Training%20-%20Certified%20Payroll%20Training.pdf) connect.ncdot.gov
5. [NC Department of Labor's prevailing wage page](https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/prevailing-wage-rates) labor.nc.gov
6. [FAP-2 example letter](https://connect.ncdot.gov/projects/construction/ConstManRefDocs/Form%20FAP-2.pdf) connect.ncdot.gov
7. [29 CFR 5.5](https://www.ecfr.gov/current/title-29/subtitle-A/part-5/section-5.5) ecfr.gov
8. [county chart as of 1-1-2024](https://connect.ncdot.gov/municipalities/Bid%20Proposals%20for%20LGA%20Content/04%20Davis-Bacon%20Wage%20Rates%20(Federal).pdf) connect.ncdot.gov
9. [January 1, 2024 state-funded checklist](https://connect.ncdot.gov/municipalities/Bid%20Proposals%20for%20LGA%20Content/02%20State%20Funded%20Projects.pdf) connect.ncdot.gov
10. [January 2024 Standard Specifications](https://connect.ncdot.gov/resources/Specifications/2024StandardSpecifications/2024%20Standard%20Specifications%20for%20Roads%20and%20Structures.pdf) connect.ncdot.gov
11. [29 CFR 3.4(a)](https://www.ecfr.gov/current/title-29/subtitle-A/part-3/section-3.4) ecfr.gov
12. [Summary of Payrolls](https://connect.ncdot.gov/projects/construction/ConstManRefDocs/Form%20FAP-1.pdf) connect.ncdot.gov
13. [29 CFR 5.12](https://www.ecfr.gov/current/title-29/subtitle-A/part-5/section-5.12) ecfr.gov
14. [E-Certified Payroll](https://connect.ncdot.gov/projects/construction/E-Certified-Payroll/Pages/default.aspx) connect.ncdot.gov
15. [2024 workshop slides](https://connect.ncdot.gov/projects/construction/Structural%20Design%20AGCDOT%20Joint%20Bridge%20Design%20Commi/2024%20AGC-NCDOT%20Workshop_Contract%20Admin.pdf) connect.ncdot.gov
16. [e-1391 page](https://connect.ncdot.gov/business/SmallBusiness/Pages/ncdote1391.aspx) connect.ncdot.gov

## Related

- [Certified payroll requirements by state](https://wellstanding.com/guides/certified-payroll-requirements-by-state/)
- [Form WH-347, step by step](https://wellstanding.com/guides/wh-347/)
- [What changed in FHWA-1273 in 2026](https://wellstanding.com/guides/fhwa-1273-changes-2026/)
- [AASHTOWare CRL certified payroll by state DOT](https://wellstanding.com/guides/aashtoware-civil-rights-labor-certified-payroll/)
- [SF-1444 additional classification requests](https://wellstanding.com/guides/sf-1444-additional-classification/)