29 C.F.R. § 5.31

Meeting wage determination obligations

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(a) A contractor or subcontractor performing work subject to a Davis-Bacon wage determination may discharge their minimum wage obligations for the payment of both straight time wages and fringe benefits by paying in cash, making payments or incurring costs for “bona fide” fringe benefits of the types listed in the applicable wage determination or otherwise found prevailing by the Secretary of Labor, or by a combination thereof.

(b) A contractor or subcontractor may discharge their obligations for the payment of the basic hourly rates and the fringe benefits where both are contained in a wage determination applicable to their laborers or mechanics in the following ways:

(1) By paying not less than the basic hourly rate to the laborers or mechanics and by making contributions for “bona fide” fringe benefits in a total amount not less than the total of the fringe benefits required by the wage determination. For example, the obligations for “Laborer: common or general” in § 5.30, figure 1 to paragraph (c), will be met by the payment of a straight time hourly rate of not less than $21.93 and by contributions of not less than a total of $6.27 an hour for “bona fide” fringe benefits; or

(2) By paying in cash directly to laborers or mechanics for the basic hourly rate and by making an additional cash payment in lieu of the required benefits. For example, where an employer does not make payments or incur costs for fringe benefits, they would meet their obligations for “Laborer: common or general” in § 5.30, figure 1 to paragraph (c), by paying directly to the laborers a straight time hourly rate of not less than $28.60 ($21.93 basic hourly rate plus $6.27 for fringe benefits); or

(3) As stated in paragraph (a) of this section, the contractor or subcontractor may discharge their minimum wage obligations for the payment of straight time wages and fringe benefits by a combination of the methods illustrated in paragraphs (b)(1) and (2) of this section. Thus, for example, their obligations for “Laborer: common or general” may be met by an hourly rate, partly in cash and partly in payments or costs for fringe benefits which total not less than $28.60 ($21.93 basic hourly rate plus $6.27 for fringe benefits).

[88 FR 57746, Aug. 23, 2023]
Notes of Decisions
Cited in 3 cases, 1990–2007 · leading case: William J. Lang Land Clearing, Inc. v. Adm'r, Wage & Hour Div., 520 F. Supp. 2d 870 (E.D. Mich. 2007).
William J. Lang Land Clearing, Inc. v. Adm'r, Wage & Hour Div., 520 F. Supp. 2d 870 (E.D. Mich. 2007). “The regulations permit employers to make “an additional cash payment in lieu of the required benefits,” 29 C.F.R. § 5.31 (1995), but they impose timing requirements on cash payments under the statute: All laborers and mechanics employed or working upon the site of the work .”
Warzecha v. Nutmeg Companies, Inc., 48 F. Supp. 2d 151 (D. Conn. 1999). “; 1 29 C.F.R. § 5.31 (1997). In no event, however, can “the aggregate of any such payments, contributions, and costs [be] less than the rate of pay described in paragraph (1) plus the amount referred to in paragraph (2).”
Miree Constr. Corp. v. Dole, 730 F. Supp. 385 (N.D. Ala. 1990). “§ 276a(b); 29 C.F.R. 5.31 (1988). 7 . See, 29 C.F.R.”
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