[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR516.27]

[Page 109-110]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 516_RECORDS TO BE KEPT BY EMPLOYERS--Table of Contents
 
   Subpart B_Records Pertaining to Employees Subject to Miscellaneous 
          Exemptions Under the Act; Other Special Requirements
 
Sec. 516.27  ``Board, lodging, or other facilities'' under section 3(m) 
of the Act.

    (a) In addition to keeping other records required by this part, an 
employer who makes deductions from the wages of employees for ``board, 
lodging, or other facilities'' (as these terms are used in sec. 3(m) of 
the Act) furnished to them by the employer or by an affiliated person, 
or who furnishes such ``board, lodging, or other facilities'' to 
employees as an addition to wages, shall maintain and preserve records 
substantiating the cost of furnishing each class of facility except as 
noted in paragraph (c) of this section. Separate records of the cost of 
each item furnished to an employee need not be kept. The requirements 
may be met by keeping combined records of the costs incurred in 
furnishing each class of facility, such as housing, fuel, or merchandise 
furnished through a company store or commissary. Thus, in the case of an 
employer who furnishes housing, separate cost records need not be kept 
for each house. The cost of maintenance, utilities, and repairs for all 
the houses may be shown together. Original cost and depreciation records 
may be kept for groups of houses acquired at the same time. Costs 
incurred in furnishing similar or closely related facilities, moreover, 
may be shown in combined records. Where cost records are kept for a 
``class'' of facility rather than for each individual article furnished 
to employees, the records must also show the gross income derived from 
each such class of facility; e.g., gross rentals in the case of houses, 
total sales through the store or commissary, total receipts from sales 
of fuel, etc.
    (1) Such records shall include itemized accounts showing the nature 
and amount of any expenditures entering into the computation of the 
reasonable cost, as defined in part 531 of this

[[Page 110]]

chapter, and shall contain the data required to compute the amount of 
the depreciated investment in any assets allocable to the furnishing of 
the facilities, including the date of acquisition or construction, the 
original cost, the rate of depreciation and the total amount of 
accumulated depreciation on such assets. If the assets include 
merchandise held for sale to employees, the records should contain data 
from which the average net investment in inventory can be determined.
    (2) No particular degree of itemization is prescribed. However, the 
amount of detail shown in these accounts should be consistent with good 
accounting practices, and should be sufficient to enable the 
Administrator or authorized representative to verify the nature of the 
expenditure and the amount by reference to the basic records which must 
be preserved pursuant to Sec. 516.6(c)(2).
    (b) If additions to or deductions from wages paid (1) so affect the 
total cash wages due in any workweek (even though the employee actually 
is paid on other than a workweek basis) as to result in the employee 
receiving less in cash than the applicable minimum hourly wage, or (2) 
if the employee works in excess of the applicable maximum hours standard 
and (i) any additions to the wages paid are a part of wages, or (ii) any 
deductions made are claimed as allowable deductions under sec. 3(m) of 
the Act, the employer shall maintain records showing on a workweek basis 
those additions to or deductions from wages. (For legal deductions not 
claimed under sec. 3(m) and which need not be maintained on a workweek 
basis, see part 531 of this chapter.)
    (c) The records specified in this section are not required with 
respect to an employee in any workweek in which the employee is not 
subject to the overtime provisions of the Act and receives not less than 
the applicable statutory minimum wage in cash for all hours worked in 
that workweek. (The application of section 3(m) of the Act in 
nonovertime weeks is discussed in part 531 of this chapter.)