[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: 29CFR541.606]

[Page 198]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 541_DEFINING AND DELIMITING THE EXEMPTIONS FOR EXECUTIVE, 
 
                      Subpart G_Salary Requirements
 
Sec. 541.606  Board, lodging or other facilities.

    (a) To qualify for exemption under section 13(a)(1) of the Act, an 
employee must earn the minimum salary amount set forth in Sec. 541.600, 
``exclusive of board, lodging or other facilities.'' The phrase 
``exclusive of board, lodging or other facilities'' means ``free and 
clear'' or independent of any claimed credit for non-cash items of value 
that an employer may provide to an employee. Thus, the costs incurred by 
an employer to provide an employee with board, lodging or other 
facilities may not count towards the minimum salary amount required for 
exemption under this part 541. Such separate transactions are not 
prohibited between employers and their exempt employees, but the costs 
to employers associated with such transactions may not be considered 
when determining if an employee has received the full required minimum 
salary payment.
    (b) Regulations defining what constitutes ``board, lodging, or other 
facilities'' are contained in 29 CFR part 531. As described in 29 CFR 
531.32, the term ``other facilities'' refers to items similar to board 
and lodging, such as meals furnished at company restaurants or 
cafeterias or by hospitals, hotels, or restaurants to their employees; 
meals, dormitory rooms, and tuition furnished by a college to its 
student employees; merchandise furnished at company stores or 
commissaries, including articles of food, clothing, and household 
effects; housing furnished for dwelling purposes; and transportation 
furnished to employees for ordinary commuting between their homes and 
work.