Content Last Revised: 4/23/04 ---DISCLAIMER---

29CFR541.606 - Board, lodging or other facilities.

• Section Number: 541.606
• Section Name: 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.