Please note: eMars is not involved in conducting Labor Standards Interviews. The following information is provided strictly for educational purposes.
One important tool the government uses to ensure contractors are following federal labor laws is the Labor Standards Interview, officially documented on Standard Form 1445 (SF-1445).
If your team is working on a project governed by the Davis-Bacon and Related Acts (DBRA), understanding how labor interviews work and why they matter can help you avoid violations and ensure accuracy in your certified payroll reports.
What Is the Labor Standards Interview?
The Labor Standards Interview (LSI) is a federal compliance tool designed to verify that workers on government projects are being paid the correct prevailing wage. It also ensures that they are properly classified for the work they perform, are receiving the required fringe benefits, and are being paid appropriate overtime rates when applicable.
These interviews are usually conducted by a contracting agency representative, labor compliance officer, or auditor while the project is in progress. The worker is interviewed confidentially, meaning their answers are not shared with their employer, and the details are documented on Standard Form 1445 (SF-1445).
Why Are These Interviews Important?
The federal government requires these interviews to prevent wage theft, misclassification, and other labor law violations on public projects. They serve several key purposes. First, they help verify compliance with federal wage determinations. They also detect discrepancies between certified payroll reports and actual job site conditions. In addition, these interviews protect workers' rights by ensuring proper classification, pay, and benefits. Finally, they strengthen accountability for both contractors and subcontractors.
Labor interviews are just one piece of the broader certified payroll reporting process, and discrepancies found during these interviews can lead to audits, fines, or contract penalties.
What Does the Interview Cover?
The questions on the SF-1445 form are straightforward but important. Workers are asked to confirm things like:
Their name, employer, and work classification
Their current wage rate
Whether they work more than 8 hours per day or 40 hours per week
Whether they are being paid overtime at time and a half
Whether they receive fringe benefits in cash or other forms
What tools they use on the job
What deductions are taken from their paycheck (aside from taxes and Social Security)
The date they started on the project and how many hours they worked most recently
All of this information is then compared against the certified payroll records submitted by the contractor or subcontractor.
How Is the Interview Conducted?
Here's a typical sequence of how a labor standards interview works:
1. Selection of Workers
A random sample of workers is selected from the jobsite. These individuals may be employed by different subcontractors or performing different classifications of work.
2. One-on-One Interview
The worker is pulled aside for a confidential interview, usually conducted on-site. The interviewer may be a contracting officer, HUD inspector, or Department of Labor representative.
3. Completion of SF-1445
The interviewer completes the Labor Standards Interview form (SF-1445) based on the worker's answers. Both the interviewer and the worker sign and date the form.
4. Payroll Cross-Check
The completed form is used to compare the worker's answers with the information submitted on the certified payroll reports. Any inconsistencies are flagged for follow-up.
What Happens If There's a Discrepancy?
If the answers on the SF-1445 don't match the payroll records, the agency or auditor may contact the contractor for clarification. They may also request revised certified payrolls and investigate further for potential wage violations. Additionally, the agency may withhold funds from the contract or pursue enforcement actions.
Common discrepancies include misclassification (e.g., listing a laborer as an equipment operator), underpayment of wages or fringe benefits, and missing overtime compensation.
Who Should Be Prepared for a Labor Standards Interview?
Any contractor or subcontractor working on a federally funded project should ensure that:
Employees understand their job classification and wage rate
Payroll is accurate and reflects actual work performed
Fringe benefits are documented clearly
Overtime pay is handled correctly
Required posters and wage determinations are visibly posted on the jobsite
It's also essential to ensure that all workers are informed of their rights before being interviewed. While they're not expected to memorize wage rates, they should be able to generally describe their duties and confirm whether they're receiving the correct pay.
How eMars Helps Contractors Stay Compliant
At eMars, we understand how overwhelming labor standards compliance can be, especially for busy contractors trying to balance productivity with federal requirements.
That's why our certified payroll reporting software is built to simplify compliance. With eMars, you can:
Track and verify employee classifications
Ensure accurate wage rates and fringe benefits
Keep real-time records aligned with Davis-Bacon requirements
Quickly provide auditors with the documentation they need
Avoid costly mistakes that can delay payment or trigger audits
Whether you're preparing for a routine site visit or undergoing a full labor standards investigation, having clean, organized, and accurate records makes all the difference.
Final Thoughts: Don't Let an Interview Catch You Off Guard
The Labor Standards Interview may seem like just another formality, but it's a critical step in maintaining wage compliance on government-funded jobs. Failing to prepare can expose your company to penalties, withheld funds, or even debarment.
However, with the right systems in place and a reliable software partner like eMars, you can ensure that your payroll records, classifications, and on-site practices are always aligned.
Want to simplify your Davis-Bacon compliance? Schedule a demo with eMars today and see how we make certified payroll reporting easier, faster, and audit-ready.
This article is for informational purposes only. eMars does not participate in or administer Labor Standards Interviews but provides tools to help contractors stay compliant with certified payroll requirements.