29 C.F.R. § 5.10

§ 5.10 Restitution, criminal action. (29 CFR Part 5)

In Force
Verified 8/21/2026 · Next check 9/20/2026
effective 8/21/2026FederalAffordable Housing Programs

Operative Text

29 C.F.R. § 5.10
(a) In cases other than those forwarded to the Attorney General of the United States under paragraph (b) of this section where violations of the labor standards clauses contained in § 5.5 and the applicable statutes referenced by § 5.1 result in underpayment of wages to workers or monetary damages caused by violations of § 5.5(a)(11) or (b)(5), the Federal agency or an authorized representative of the Department of Labor will request that restitution be made to such workers or on their behalf to plans, funds, or programs for any type of bona fide fringe benefits within the meaning of 40 U.S.C. 3141(2)(B), including interest from the date of the underpayment or loss. Interest on any back wages or monetary relief provided for in this part will be calculated using the percentage established for the underpayment of taxes under 26 U.S.C. 6621 and will be compounded daily.

(b) In cases where the Agency Head or the Administrator finds substantial evidence that such violations are willful and in violation of a criminal statute, the matter will be forwarded to the Attorney General of the United States for prosecution if the facts warrant. In all such cases the Administrator will be informed simultaneously of the action taken.
Source: Legislative text reproduced verbatim
Plain English

Under 29 CFR Part 5 § 5.10, when labor standards violations result in underpaid wages or other monetary harm on covered federal contracts, the responsible federal agency or the Department of Labor is directed to seek restitution for affected workers—including interest calculated daily using the IRS underpayment rate. When evidence suggests violations were both willful and criminal, the matter is referred to the U.S. Attorney General for potential prosecution.

Written by anthropic/claude-sonnet-4.6 · Reviewed on September 4, 2026

Plain English — not legal advice.

For Property Managers

As a contractor or subcontractor on federally covered projects, compliance with the labor standards clauses in § 5.5 is the foundation for avoiding the restitution and referral mechanisms described in § 5.10. Compliant operators maintain accurate payroll records, pay required prevailing wages and fringe benefits on time, and self-audit to catch and correct any shortfalls before a federal agency or Department of Labor representative identifies them.

General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.

For Tenants

Workers on federal construction or service contracts who believe they were underpaid may have restitution rights under 29 CFR Part 5 § 5.10, including interest on any wages owed from the date of underpayment. Affected workers can file a complaint with the U.S. Department of Labor's Wage and Hour Division, raise the underpayment as part of an administrative proceeding, or consult a tenant-rights or worker-rights organization for guidance on available options.

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.

Effective Timeline

Current
Aug 21, 2026
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Related Rules

§ 1437
Declaration of policy and public housing agency organization
§ 5.100
§ 5.100 Definitions.
§ 5.107
§ 5.107 Audit requirements for non-profit organizations.

Source Information

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