29 C.F.R. § 5.31
§ 5.31 Meeting wage determination obligations. (29 CFR Part 5)
Operative Text
(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).
Under 29 CFR Part 5 § 5.31, contractors and subcontractors covered by a Davis-Bacon wage determination must meet minimum wage obligations that include both a base hourly rate and fringe benefits. These obligations can be satisfied by paying cash wages, contributing to qualifying "bona fide" fringe benefit plans, or using a combination of both approaches. The rule establishes that the total compensation delivered to workers — whether through direct pay, benefit contributions, or a mix — must reach the floor set by the applicable wage determination.
Plain English — not legal advice.
While 29 CFR Part 5 § 5.31 applies to contractors and subcontractors on covered federal or federally assisted construction projects rather than to residential landlords directly, property owners who engage contractors for such work should be aware that compliant contractors generally document how they are meeting prevailing wage obligations — whether through direct cash wages, fringe benefit contributions, or a combination. Operators overseeing covered construction projects typically verify that every contractor and subcontractor on the job maintains payroll records reflecting compliance with the applicable wage determination. Reviewing certified payroll submissions is a common practice for ensuring that downstream contractors are satisfying their § 5.31 obligations.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Workers employed on projects covered by a Davis-Bacon wage determination have a right under 29 CFR Part 5 § 5.31 to receive total compensation — in cash, fringe benefits, or a combination — that meets the rates listed in the applicable wage determination. If a worker believes their employer is not meeting these obligations, general enforcement paths include filing a complaint with the U.S. Department of Labor's Wage and Hour Division, which administers Davis-Bacon compliance. Tenant-rights organizations and worker advocacy groups can help individuals understand whether their work is covered and what documentation may be relevant to a potential complaint.
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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