Cure Payment Deadlines for Underpayments in PWA Projects

Overview

If an employee is underpaid on a PWA-covered project, you may still correct the issue without incurring the standard $5,000 per affected worker per year penalty—as long as specific timing and eligibility conditions are met.

Cure Payment Timeframe

Wage shortfalls must be corrected, including backpay with interest, by the last day of the first month following the calendar quarter in which the underpayment occurred.
- Example: If an underpayment occurs in Q1 (January–March), the correction must be made by April 30.

Eligibility Criteria to Avoid Penalties

One of the following must also apply:

The worker was not underpaid in more than 10% of their pay periods for that project/year.
The total underpayment was less than 5% of the wages they should have received that year.

How to Stay Ahead of Cure Deadlines

Reunion helps you manage this process efficiently:

Penalties Page– Instantly identify underpayment issues, with penalty estimates, backpay amounts, and due dates.
Quarterly Compliance Reviews – Review flagged items at the end of each quarter (or week/month) to ensure timely correction.
Contractor Notifications – Notify contractors to review, verify or correct their data early.
Backpay & Interest Processing – Issue corrections and document proof of payment directly through the platform as cure payments.

Key Takeaways

Correct wage shortfalls promptly—you typically have one month after the quarter ends.
Ensure one of the 10% or 5% thresholds is met to remain eligible for curing.