29 C.F.R. § 5.23
§ 5.23 The statutory provisions. (29 CFR Part 5)
Operative Text
Pursuant to the Davis-Bacon Act, as amended and codified at 40 U.S.C. 3141(2), the term “prevailing wages” and similar terms include the basic hourly rate of pay and, for the listed fringe benefits and other bona fide fringe benefits not required by other law, the contributions irrevocably made by a contractor or subcontractor to a trustee or third party pursuant to a bona fide fringe benefit fund, plan, or program, and the costs to the contractor or subcontractor that may be reasonably anticipated in providing bona fide fringe benefits pursuant to an enforceable commitment to carry out a financially responsible plan or program, which was communicated in writing to the affected laborers and mechanics. Section 5.29 discusses specific fringe benefits that may be considered to be bona fide.
Under 29 CFR Part 5 § 5.23, the Davis-Bacon Act's concept of 'prevailing wages' extends beyond a worker's base hourly pay to include fringe benefits—such as health insurance or pension contributions—that a contractor irrevocably pays into a qualifying fund or plan on a worker's behalf. It also covers costs a contractor reasonably anticipates incurring under a written, financially responsible commitment to provide those benefits to covered laborers and mechanics. Section 5.29 of the same regulations identifies specific fringe benefits that qualify under this framework.
Plain English — not legal advice.
While 29 CFR Part 5 § 5.23 primarily governs federal construction contractors rather than residential landlords directly, property owners who engage contractors on federally assisted housing projects should be aware that prevailing wage obligations include both base pay and qualifying fringe benefit contributions. Compliant operators generally ensure that any contractor or subcontractor working on covered projects documents fringe benefit plans in writing and makes contributions to bona fide funds irrevocably. Reviewing Section 5.29 alongside § 5.23 helps clarify which specific benefit types satisfy the regulatory standard.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
29 CFR Part 5 § 5.23 protects laborers and mechanics working on covered federal or federally assisted projects by ensuring that prevailing wage calculations include both base hourly pay and qualifying fringe benefits. Workers who believe their compensation does not reflect the full prevailing wage—including applicable fringe benefits—may file a complaint with the U.S. Department of Labor's Wage and Hour Division or consult a worker-rights organization for guidance. Tenant-rights groups familiar with federally assisted housing can also help residents understand how prevailing wage rules may affect construction or rehabilitation work at their properties.
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 5, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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