[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: 29CFR531.27]

[Page 165-166]
 
                             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 C_Interpretations
 
Sec. 531.27  Payment in cash or its equivalent required.

    (a) Standing alone, sections 6 and 7 of the Act require payments of 
the prescribed wages, including overtime compensation, in cash or 
negotiable instrument payable at par. Section 3(m) provides, however, 
for the inclusion in the `TT`TwageT'TT' paid to any employee, under the 
conditions which it prescribes of the

[[Page 166]]

``reasonable cost,'' or ``fair value'' as determined by the Secretary, 
of furnishing such employee with board, lodging, or other facilities. In 
addition, section 3(m) provides that a tipped employee's wages may 
consist in part of tips. It is section 3(m) which permits and governs 
the payment of wages in other than cash.
    (b) It should not be assumed that because the term ``wage'' does not 
appear in section 7, all overtime compensation must be paid in cash and 
may not be paid in board, lodging, or other facilities. There appears to 
be no evidence in either the statute or its legislative history which 
demonstrates the intention to provide one rule for the payment of the 
minimum wage and another rule for the payment of overtime compensation. 
The principles stated in paragraph (a) of this section are considered 
equally applicable to payment of the minimum hourly wage required by 
section 6 or of the wages required by the equal pay provisions of 
section 6(d), and to payment, when overtime is worked, of the 
compensation required by section 7. Thus, in determining whether he has 
met the minimum wage and overtime requirements of the Act, the employer 
may credit himself with the reasonable cost to himself of board, 
lodging, or other facilities customarily furnished by him to his 
employees when the cost of such board, lodging, or other facilities is 
not excluded from wages paid to such employees under the term of a bona 
fide collective bargaining agreement applicable to the employees. Unless 
the context clearly indicates otherwise, the term ``wage'' is used in 
this part to designate the amount due under either section 6 or section 
7 without distinction. It should be remembered, however, that the wage 
paid for a job, within the meaning of the equal pay provisions of 
section 6(d), may include remuneration for employment which is not 
included in the employee's regular rate of pay under section 7(e) of the 
act or is not allocable to compensation for hours of work required by 
the minimum wage provisions of section 6. Reference should be made to 
parts 778 and 800 of this chapter for a more detailed discussion of the 
applicable principles.
    (c) Tips may be credited or offset against the wages payable under 
the Act in certain circumstances, as discussed later in this subpart. 
See also the recordkeeping requirements contained in part 516 of this 
chapter.