29 C.F.R. § 5.24
§ 5.24 The basic hourly rate of pay. (29 CFR Part 5)
Operative Text
“The basic hourly rate of pay” is that part of a laborer's or mechanic's wages which the Secretary of Labor would have found and included in wage determinations prior to the 1964 amendments. The Secretary of Labor is required to continue to make a separate finding of this portion of the wage. In general, this portion of the wage is the cash payment made directly to the laborer or mechanic. It does not include fringe benefits.
Under 29 CFR Part 5 § 5.24, the 'basic hourly rate of pay' refers to the direct cash wages paid to laborers and mechanics on covered projects, distinct from any fringe benefits they may also receive. This definition traces back to the pre-1964 framework for wage determinations, and the Secretary of Labor is required to continue identifying and publishing this figure separately in wage determinations. The rule draws a clear line between cash wages and non-cash compensation such as health insurance or pension contributions.
Plain English — not legal advice.
While 29 CFR Part 5 § 5.24 is a federal prevailing wage provision rather than a residential rent regulation, property owners who engage laborers or mechanics on federally covered construction or rehabilitation projects should understand that wage determinations will include a separately stated basic hourly rate representing direct cash pay. Compliant operators on such projects generally ensure that payroll records clearly distinguish cash wages from any fringe benefit contributions. Keeping these figures separately documented helps demonstrate conformance with the wage determination issued for the project.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants, 29 CFR Part 5 § 5.24 is most relevant when federally assisted housing construction or rehabilitation is involved, as it governs how workers on those projects are paid. If workers on a covered project believe their direct cash wages do not match the basic hourly rate established in the applicable wage determination, they may raise that concern with the U.S. Department of Labor's Wage and Hour Division. Tenant-rights organizations or worker advocacy groups can help individuals understand how this provision intersects with housing development projects in their community.
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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