Texas certified payroll: what the law requires and where payroll goes
This page draws on Government Code Chapter 2258, TxDOT's Construction Contract Administration Manual and LCPtracker FAQ, and the Texas Water Development Board's Davis-Bacon guidance.
Last reviewed against the sources it cites
The short answer
Texas Government Code Chapter 2258 requires prevailing wages and wage records, not a payroll filing, and it names no state agency to receive one. Weekly certified payroll comes from your contract: TxDOT construction contracts let from August 2017 use LCPtracker, and contracts subject to Davis-Bacon or a Related Act, including State Revolving Fund projects, carry the federal weekly clause. Ask the owner which applies.
- Section 2258.024 requires a record of each worker's name, occupation and actual per diem wages, open to inspection by the public body, and no section of Chapter 2258 requires a payroll submission.
- Under section 2258.023(b) the underpayment penalty is $60 for each worker for each calendar day or part of a day, and the public body must write it into the contract.
- Violating the records section is a crime: section 2258.058 sets a fine of up to $500, up to six months in jail, or both.
- TxDOT's Construction Contract Administration Manual says that on projects let from August 2017, weekly certified payrolls go through LCPtracker within 7 calendar days after the end of the payroll period.
- On State Revolving Fund projects, TWDB guidance DB-0156 (Rev 6/24, section 6) says certified payroll is due within 7 days after the regular payment date of the payroll period, a different clock from TxDOT's, though the contract clause in the same document says only to submit weekly.
- For an alleged underpayment, the public body makes an initial determination before the 31st day, the parties have until before the 15th day after it to settle, and an unsettled issue goes to binding arbitration, per sections 2258.052 to 2258.054.
Does Texas require certified payroll?
If an owner asked for certified payroll and you cannot find a Texas form, that is why: Texas law requires no payroll filing. Chapter 2258 requires prevailing wages on public works and wage records. It has no section that makes you send payroll to anyone, and it names no state labor agency. The "public body" that awards the contract enforces it.
What Chapter 2258 covers
- Coverage. Construction of a public work paid for in whole or in part from public funds (section 2258.002). The chapter sets no dollar threshold. Maintenance work is excluded from the wage duty (section 2258.021(b)).
- Rates. On a contract a political subdivision awards, the public body sets the rate by survey or by adopting the U.S. Department of Labor Davis-Bacon rate (section 2258.022(a)). For state-awarded work in a county bordering Mexico or next to one, it must survey statewide and locally and use the higher of the formulas listed (section 2258.022(b)); for other state-awarded work the section states no method. The determination is final, and the body must state the rates in the contract (section 2258.022(d) and (e)); if the body did not state the rates, you do not violate the pay section (section 2258.023(c)).
- Records. You and each subcontractor keep every worker's name, occupation and actual per diem wages, open to the public body's inspection (section 2258.024).
- Subcontractor certificate. A contractor may rely on a subcontractor's certificate about payment of all sums due the subcontractor's workers until the contrary has been determined (section 2258.026). That is a reliance rule, not a filing: the section does not require a certificate or a submission.
The Texas statutes site's text, read November 4, 2026, shows 2007 as the last amendment.
Where does Texas certified payroll go?
It depends on the owner and the money behind the job.
| Your job | Where payroll goes and when |
|---|---|
| TxDOT construction contract | LCPtracker, weekly, within 7 calendar days after the payroll period ends (manual). TxDOT's FAQ says all construction contracts "will include a Special Provision to Item 7" requiring it, beginning with the August 2017 letting. Asked whether maintenance or facilities contracts need it, the FAQ answers "Not at this time." The FAQ is undated and appears to predate the August 2017 letting, so check your contract. |
| City or county job with federal-aid highway money through TxDOT | Weekly certified payroll goes to the local government, which TxDOT's Local Government Projects manual treats as the "contracting agency." Both that manual and the Project Management Guide (dated May 20, 2024) tie this to Form FHWA-1273 Section IV.3. The Guide (sections 9.2.13.1 and 9.3.15.1) says payrolls must conform to the WH-347, including the Statement of Compliance, and that the prime is responsible for submitting subcontractor payrolls. The local government reviews payroll by sampling. TxDOT's construction manual lists "contracts with a political subdivision" among those the Davis-Bacon Act does not apply to, which appears to conflict with the local government manual and Guide. Those two documents are the ones written for local government projects, so follow them on a city or county job with federal-aid highway money, and confirm with the local government how it collects payroll. |
| Water or wastewater job funded by TWDB's State Revolving Fund | DB-0156 (Rev 6/24) says the Davis-Bacon prevailing wage requirements apply to all State Revolving Fund projects (section I), and it lists both TWDB and the applicant or subrecipient as responsible for reviewing weekly contractor certified payrolls (section II). Subcontractors send weekly payroll to the prime, and the prime sends it all to the "contracting officer" (DB-0156 section II), so ask the owner where to send it. Use the WH-347, or your own form plus TWDB's form DB-0155 (Rev 06/24). TWDB's payroll-records guidance says payroll is due within 7 days after the regular payment date (DB-0156 section 6), but the contract clause the same document has owners insert says only to submit weekly (DB-0156 Appendix 1, section 3). Check which date your contract and the owner's instructions give, and meet the earlier one. The owner certifies monthly (DB-0156 section 3) on form DB-0154 (Rev 06/24), which goes in with each outlay report. |
| Any other contract subject to Davis-Bacon or a Related Act | Weekly, for each week with covered work, to the contracting agency or to the applicant, sponsor or owner that keeps the records (29 CFR 5.5(a)(3)(ii)(A)). The prime is responsible for submitting every subcontractor's payroll. The clause goes into federally financed or assisted contracts over $2,000 that are subject to the labor standards laws in 29 CFR 5.1 (section 5.5(a)), so ask the owner whether your funding program carries Davis-Bacon. See our WH-347 guide. |
| Other state or local job, with no Davis-Bacon or Related Act | Chapter 2258 requires the wage records, open to the public body's inspection, and no payroll submission. On a TxDOT local government project with state funds, the Guide also requires the local government to adopt TxDOT's wage-rate compliance monitoring procedures or submit an alternate program for TxDOT approval (section 9.2.13.2), so ask the local government what it collects. The sources did not show a payroll rule for other state agency jobs; see "What this page could not confirm." |
TxDOT jobs: how LCPtracker payroll works
The TxDOT manual's labor section was updated effective January 2026.
- Check the letting date. The FAQ makes LCPtracker mandatory from the August 2017 letting and keeps projects let before January 2017 in EPRS. It does not say which system covers lettings between, and the EPRS page still shows a "Submit your payroll" link, so ask the area office.
- Get an account. The FAQ has construction contractor employees complete Form 2453, LCPtracker Vendor Access Request, and email it to the LCPtracker team. It is undated and the manual does not describe account setup, so confirm the route with TxDOT.
- Submit weekly. Each certified payroll is due within 7 calendar days after the payroll period ends. The manual cites a "Subcontracting and Payroll Requirements" chart that this page could not read.
What happens when something goes wrong
Underpaying a worker: $60 per worker per day
A contractor or subcontractor who pays below the contract rates owes $60 for each worker for each calendar day or part of a day (section 2258.023(b)). The public body must put this penalty in the contract, and a municipality of 10,000 people or fewer is not entitled to collect it (section 2258.023(e)). The chapter sets no late-payroll penalty, because it requires no submission.
A pay complaint: determination, settlement, then arbitration
This covers alleged violations of the pay section, 2258.023, not records violations.
- The public body receives information about an alleged underpayment, including a complaint by a worker. Before the 31st day it decides whether good cause exists and notifies the contractor or subcontractor and any affected worker in writing (section 2258.052). It retains the amount due under the contract (section 2258.052(d)).
- The contractor or subcontractor and the worker have until before the 15th day after that determination to settle (section 2258.053(a)).
- If they do not, binding arbitration follows, without the public body as a party. A district court appoints the arbitrator if they do not agree on one before the 11th day (section 2258.053). The arbitrator awards the penalty and wages owed (section 2258.054(a)); the award is final (section 2258.055). Costs go against the party who does not prevail, but not against the worker unless the claim is frivolous. If the worker gets no award and the claim is not frivolous, the parties share costs equally (section 2258.054(b)).
- The public body pays the worker from the retained money. If that falls short, the worker can sue the contractor and its surety for the rest, plus attorney's fees and costs (section 2258.056).
If the public body withholds money from the prime because of a subcontractor's violation, the prime can withhold that amount from the subcontractor, or if it already paid, from future payments, or sue the subcontractor and its surety (section 2258.057).
Records: a crime, not just a fine
Section 2258.058 makes it an offense for a contractor, subcontractor, or their agent or representative to violate the records section, punishable by a fine of up to $500, up to six months in jail, or both.
On TxDOT and federal jobs
On federally funded TxDOT projects, uncorrected payroll deficiencies can lead to withheld monthly estimates (manual). Under 29 CFR 5.5(a)(3)(iv)(B), the federal agency may, after written notice, suspend further payment if required records are not submitted or made available, and failing to submit the required records upon request, or to make them available, may be grounds for debarment. See our FHWA-1273 guide.
What this page could not confirm
The Texas Department of Housing and Community Affairs refused automated access to its labor standards guides, so its programs are not covered; see housing authority certified payroll. The sources had no payroll rule for state agency jobs with no federal money, or for cities, counties or school districts on locally funded jobs with no federal or state money, so ask the owner in writing. The "Subcontracting and Payroll Requirements" chart, which the manual says shows when payroll records are required, is on an internal TxDOT site and could not be read. For other states, see the state-by-state table.
What we do
We prepare certified payroll for public works contractors. Tell us about your project.
Questions
Does Texas have a state certified payroll form?
Is the $60 penalty for a late payroll?
Do I need LCPtracker on a city or county job?
How long do I keep payroll records in Texas?
Sources
Every figure on this page links to its source where it first appears. The full list, in order:
- Government Code Chapter 2258 tcss.legis.texas.gov
- Construction Contract Administration Manual txdot.gov
- LCPtracker FAQ txdot.gov
- Davis-Bacon guidance twdb.texas.gov
- Davis-Bacon or a Related Act ecfr.gov
- Local Government Projects manual txdot.gov
- Project Management Guide txdot.gov
- form DB-0155 twdb.texas.gov
- form DB-0154 twdb.texas.gov
- updated effective January 2026 txdot.gov
- EPRS page txdot.gov