(a) A contractor or subcontractor performing work subject to a
Davis-Bacon wage determination may discharge his 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 his obligations for
the payment of the basic hourly rates and the fringe benefits where both
are contained in a wage determination applicable to his 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 the contributions for the fringe benefits in the
wage determinations, as specified therein. For example, in the
illustration contained in paragraph (c) of Sec. 5.30, the obligations
for ``painters'' will be met by the payment of a straight time hourly
rate of not less than $3.90 and by contributing not less than at the
rate of 15 cents an hour for health and welfare benefits, 10 cents an
hour for pensions, and 20 cents an hour for vacations; or
(2) 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
``painters'' in the illustration in paragraph (c) of Sec. 5.30 will be
met by the payment of a straight time hourly rate of not less than $3.90
and by contributions of not less than a total of 45 cents an hour for
``bona fide'' fringe benefits; or
(3) 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, he would meet his
obligations for ``painters'' in the illustration in paragraph (c) of
Sec. 5.30, by paying directly to the painters a straight time hourly
rate of not less than $4.35 ($3.90 basic hourly rate plus 45 cents for
fringe benefits); or
(4) As stated in paragraph (a) of this section, the contractor or
subcontractor may discharge his minimum wage obligations for the payment
of straight time wages and fringe benefits by a combination of the
methods illustrated in paragraphs (b)(1) thru (3) of this section. Thus,
for example, his obligations for ``painters'' may be met by an hourly
rate, partly in cash and partly in payments or costs for fringe benefits
which total not less than $4.35 ($3.90 basic hourly rate plus 45 cents
for fringe benefits). The payments in such case may be $4.10 in cash and
25 cents in payments or costs in fringe benefits. Or, they may be $3.75
in cash and 60 cents in payments or costs for fringe benefits.
[30 FR 13136, Oct. 15, 1965]
