[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR531.33]

[Page 167-168]
 
                             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. 531.33  ``Reasonable cost''; ``fair value.''

    (a) Section 3(m) directs the Administrator to determine ``the 
reasonable cost * * * to the employer of furnishing * * * facilities'' 
to the employee, and in

[[Page 168]]

addition it authorizes him to determine ``the fair value'' of such 
facilities for defined classes of employees and in defined areas, which 
may be used in lieu of the actual measure of the cost of such facilities 
in ascertaining the ``wages'' paid to any employee. Subpart B contains 
three methods whereby an employer may ascertain whether any furnished 
facilities are a part of ``wages'' within the meaning of section 3(m): 
(1) An employer may calculate the ``reasonable cost'' of facilities in 
accordance with the requirements set forth in Sec. 531.3; (2) an 
employer may request that a determination of ``reasonable cost'' be 
made, including a determination having particular application; and (3) 
an employer may request that a determination of ``fair value'' of the 
furnished facilities be made to be used in lieu of the actual measure of 
the cost of the furnished facilities in assessing the ``wages'' paid to 
an employee.
    (b) ``Reasonable cost,'' as determined in Sec. 531.3 ``does not 
include a profit to the employer or to any affiliated person.'' Although 
the question of affiliation is one of fact, where any of the following 
persons operate company stores or commissaries or furnish lodging or 
other facilities they will normally be deemed ``affiliated persons'' 
within the meaning of the regulations: (1) A spouse, child, parent, or 
other close relative of the employer; (2) a partner, officer, or 
employee in the employer company or firm; (3) a parent, subsidiary, or 
otherwise closely connected corporation; and (4) an agent of the 
employer.