U.S. DEPARTMENT OF LABOR
OFFICE OF THE SOLICITOR
WASHINGTON 25
November 22, 1965
MEMORANDUM #66 , .
TO: AGENCIES ABINISTERING STATUTES REFERRED TO IN 29
CFR, SUBTITLE A, PART 5.
FROM: E. Irving Manger
Associate Administrator
SUBJECT: Opinions on application of the Davis-Bacon and related
Acts.
Reference is made to previous covering memoranda, subject
as above, enclosing copies of opinions for your information and
guidance in carrying out your responsibilities for enforcement of
the cited Acts.
A copy of a recent opinion on the same general subject is
enclosed which we hope will be of further interest and assistance,
Enclosures DB-49






































DB-49
U.S. DEPARTMENT OF LABOR
0FFICE OF THE SOLICITOR
WASHINGTON 25
Mr. Ray J. Dolan, Director
Labor Relations Branch
Public Housing Administration
Housing and Home Finance Agency
Washington, D. C. 20413
Dear Mr. Dolan: 
This is in reference to your letter of September 22, 1965, in which you
request our opinion with respect to the application and enforcement of
fringe benefits predetermined by this Department as a part of the pre-
vailing wage rate.
Your inquiry is prompted by several questions posed by your field offices
concerning this matter. The questions and our answers are set forth below.
Question
Is a contractor who is employing some union workers, but does not have a
collective bargaining agreement with the union, required to make fringe
benefit payments to the union fund, or can he choose to pay the fringe
benefits to the worker in cash?
Answer
The Davis-bacon Act provides that a contractor or a subcontractor may dis-
charge his minimum wage obligations for the payments of straight time wages
and fringe benefits by making payments in cash, by making or incurring cost
for "bona fide" fringe benefits of the types contained in the wage deter-
mination or by a combination thereof. See section 5.31 of our Regulations
(29 CFR Part 5). As far as the Department is concerned, the contractor would
meet his wage determination obligations by paying the fringe benefits to the
worker in cash.
Question
If a contractor pays the fringe benefits to the worker in cash should the
apprentice training benefit be paid to the worker, as this fringe benefit is
not a personal benefit to the individual worker but is for the benefit of
the trade training program? 
If such fringe benefit is not paid to the worker, and the contractor is not a
party to a collective bargaining agreement, then where should such a benefit
be paid?



















Mr. Ray J. Dolan           Page 2
ANSWER
Section 1(b) of the Davis-Bacon Act defines the term "Wages", "Scale of
Mages", "Wage Rates", "Minimum Wages", and "Prevailing Wages" to include
defraying costs of apprenticeship training programs. Therefore, unless
the contractor contributes to or incurs cost for such programs, the
amount of the fringe benefits contained in the applicable wage deter-
mination must be paid to the employees.,
If a holiday designated as a paid holiday falls on a non-work day, such as
Saturday or Sunday, does the worker receive holiday pay on another day such
as Friday or Monday?
Generally, the employee would receive the holiday pay in addition to his pay
for those hours worked during the workweek, however, the terminology in the
collective bargaining agreement which reflects the local prevailing wage.
patterns would govern such situations. The meaning in any given circumstance
would be that assigned by the bargaining parties.
If a holiday falls on a regular work day, such as Monday through Friday, is
the holiday counted as a day worked in computing the 40 hour workweek under
the Contract Work Hours Standards Act?
If the employee did not actually perform work on the designated holiday, these
hours are not counted in computing the 40 hour workweek. Only those hours
actually worked can be considered as hours worked in computing overtime under
the Contract work Hours Standards Act.
Question
If the workers are required to work on a day designated as a paid holiday do
the workers receive straight time for the holiday, plus straight time for the
work performed? Would this count as two days worked in computing the 40 hour
workweek?
Answer
An employee who works on the holiday would he entitled to receive wages for
the hours worked at not less than the predetermined hourly rate. Whether the
pay he would receive if he did not work on the holiday should also be paid him

























Mr. Ray J. Dolan        Page 3
in these circumstances depends on the intent of the agreements reflecting
the prevailing practice on which the fringe benefit determination is based.
Under some such agreements idle holiday pay is provided only to employees
who do not actually work on the holiday; holiday work may be specially
provided for, as by establishing premium rates for such work. Under other
agreements idle holiday pay may be payable regardless of whether the
employee works on the holiday, and if he does work he receives such pay
in addition to his wages for working. In regard to computing those hours
worked in excess of 40 hours in a workweek, our answer immediately above
would apply.
We trust that you will find the answer helpful. If I can be of further
assistance, please let me know.
Yours sincerely,
Charles Donahue
Solicitor of Labor