[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: 29CFR531.35]

[Page 168-169]
 
                             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. 531.35  ``Free and clear'' payment; ``kickbacks.''

    Whether in cash or in facilities, ``wages'' cannot be considered to 
have been paid by the employer and received by the employee unless they 
are paid finally and unconditionally or ``free and clear.'' The wage 
requirements of the Act will not be met where the employee ``kicks-
back'' directly or indirectly to the employer or to another person for 
the employer's benefit the whole or part of the wage delivered to the 
employee. This is true whether the ``kick-back'' is made in cash or in 
other than cash. For example, if it is a requirement of the employer 
that the employee must provide tools of the trade which will be used in 
or are specifically required for the performance of the employer's 
particular work, there would be a violation of the Act in any workweek 
when the cost of such tools purchased by the employee cuts into the 
minimum or overtime wages required to be paid him under the Act. See 
also in this connection, Sec. 531.32(c).

[[Page 169]]

           Payment Where Additions or Deductions Are Involved