29 C.F.R. § 3.6
§ 3.6 Payroll deductions permissible with the approval of the Secretary of Labor. (29 CFR Part 3)
Operative Text
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.
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.
Plain English — not legal advice.
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.
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.
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