29 C.F.R. § 3.6

§ 3.6 Payroll deductions permissible with the approval of the Secretary of Labor. (29 CFR Part 3)

In Force
Verified 8/21/2026 · Next check 9/20/2026
effective 8/21/2026FederalAffordable Housing Programs

Operative Text

29 C.F.R. § 3.6
Any contractor or subcontractor may apply to the Secretary of Labor for permission to make any deduction not permitted under § 3.5. The Secretary may grant permission whenever he finds that:

(a) The contractor, subcontractor, or any affiliated person does not make a profit or benefit directly or indirectly from the deduction either in the form of a commission, dividend, or otherwise;

(b) The deduction is not otherwise prohibited by law;

(c) The deduction is either (1) voluntarily consented to by the employee in writing and in advance of the period in which the work is to be done and such consent is not a condition either for the obtaining of employment or its continuance, or (2) provided for in a bona fide collective bargaining agreement between the contractor or subcontractor and representatives of its employees; and

(d) The deduction serves the convenience and interest of the employee.
Source: Legislative text reproduced verbatim
Plain English

Under 29 CFR Part 3 § 3.6, contractors and subcontractors working on federally funded construction projects may seek the Secretary of Labor's approval to make payroll deductions that are not already authorized under § 3.5. Approval can be granted only when the deduction meets all four conditions: the employer gains no financial benefit from it, it is lawful, the worker has genuinely consented in writing beforehand or a collective bargaining agreement covers it, and it serves the employee's own convenience and interest. This provision creates a narrow, supervised pathway for deductions beyond the standard permitted list.

Written by anthropic/claude-sonnet-4.6 · Reviewed on September 4, 2026

Plain English — not legal advice.

For Property Managers

Contractors and subcontractors covered by 29 CFR Part 3 § 3.6 who wish to make non-standard payroll deductions must submit a formal application to the Secretary of Labor before implementing them. Compliant operators document that they receive no profit or commission from the deduction, confirm the deduction is lawful, and secure genuine advance written consent from each affected worker—ensuring that consent is never tied to hiring or continued employment. Maintaining clear records of the application, approval, and employee consent supports compliance with this provision.

General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.

For Tenants

Workers on federally funded construction projects are protected under 29 CFR Part 3 § 3.6, which limits when an employer can take deductions beyond those already permitted—requiring, among other things, that any such deduction genuinely serve the employee's interest and that written consent was freely given before the work period began. If a worker believes a deduction was taken without proper Secretary of Labor approval or without meeting the provision's conditions, they may raise that concern with the U.S. Department of Labor's Wage and Hour Division or consult a tenant-rights or worker-rights organization for guidance on available options.

General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.

Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.

Effective Timeline

Current
Aug 21, 2026
Click on timeline segments to view historical versions.

References Out

No outbound references recorded yet for this provision.

References In

No inbound references recorded yet for this provision.

Related Rules

§ 1437
Declaration of policy and public housing agency organization
§ 5.100
§ 5.100 Definitions.
§ 5.107
§ 5.107 Audit requirements for non-profit organizations.

Source Information

Snapshot SHA:
Fetched:Aug 21, 2026, 06:39 PM UTC