[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: 29CFR531.2]

[Page 162]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 531_WAGE PAYMENTS UNDER THE FAIR LABOR STANDARDS ACT OF 1938
--Table of Contents
 
                      Subpart A_Preliminary Matters
 
Sec. 531.2  Purpose and scope.

    (a) Section 3(m) of the Act defines the term ``wage'' to include the 
``reasonable cost'', as determined by the Secretary of Labor, to an 
employer of furnishing any employee with board, lodging, or other 
facilities, if such board, lodging, or other facilities are customarily 
furnished by the employer to his employees. In addition, section 3(m) 
gives the Secretary authority to determine the ``fair value.'' of such 
facilities on the basis of average cost to the employer or to groups of 
employers similarly situated, on average value to groups of employees, 
or other appropriate measures of ``fair value.'' Whenever so determined 
and when applicable and pertinent, the ``fair value'' of the facilities 
involved shall be includable as part of ``wages'' instead of the actual 
measure of the costs of those facilities. The section provides, however, 
that the cost of board, lodging, or other facilities shall not be 
included as part of ``wages'' if excluded therefrom by a bona fide 
collective bargaining agreement. Section 3(m) also provides a method for 
determining the wage of a tipped employee.
    (b) This part 531 contains any determinations made as to the 
``reasonable cost'' and ``fair value'' of board, lodging, or other 
facilities having general application, and describes the procedure 
whereby determinations having general or particular application may be 
made. The part also interprets generally the provisions of section 3(m) 
of the Act, including the term ``tipped employee'' as defined in section 
3(t).