[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: 29CFR531.28]

[Page 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. 531.28  Restrictions applicable where payment is not in cash or its 
equivalent.

    It appears to have been the clear intention of Congress to protect 
the basic minimum wage and overtime compensation required to be paid to 
the employee by sections 6 and 7 of the Act from profiteering or 
manipulation by the employer in dealings with the employee. Section 3(m) 
of the Act and subpart B of this part accordingly prescribe certain 
limitations and safeguards which control the payment of wages in other 
than cash or its equivalent. (Special recordkeeping requirements must 
also be met. These are contained in part 516 of this chapter.) These 
provisions, it should be emphasized, do not prohibit payment of wages in 
facilities furnished either as additions to a stipulated wage or as 
items for which deductions from the stipulated wage will be made; they 
prohibit only the use of such a medium of payment to avoid the 
obligation imposed by sections 6 and 7.