(a) In addition to keeping other records required by this part, an
employer who makes deductions from the wages of employees for ``board,
lodging, or other facilities'' (as these terms are used in sec. 3(m) of
the Act) furnished to them by the employer or by an affiliated person,
or who furnishes such ``board, lodging, or other facilities'' to
employees as an addition to wages, shall maintain and preserve records
substantiating the cost of furnishing each class of facility except as
noted in paragraph (c) of this section. Separate records of the cost of
each item furnished to an employee need not be kept. The requirements
may be met by keeping combined records of the costs incurred in
furnishing each class of facility, such as housing, fuel, or merchandise
furnished through a company store or commissary. Thus, in the case of an
employer who furnishes housing, separate cost records need not be kept
for each house. The cost of maintenance, utilities, and repairs for all
the houses may be shown together. Original cost and depreciation records
may be kept for groups of houses acquired at the same time. Costs
incurred in furnishing similar or closely related facilities, moreover,
may be shown in combined records. Where cost records are kept for a
``class'' of facility rather than for each individual article furnished
to employees, the records must also show the gross income derived from
each such class of facility; e.g., gross rentals in the case of houses,
total sales through the store or commissary, total receipts from sales
of fuel, etc.
(1) Such records shall include itemized accounts showing the nature
and amount of any expenditures entering into the computation of the
reasonable cost, as defined in part 531 of this chapter, and shall
contain the data required to compute the amount of the depreciated
investment in any assets allocable to the furnishing of the facilities,
including the date of acquisition or construction, the original cost,
the rate of depreciation and the total amount of accumulated
depreciation on such assets. If the assets include merchandise held for
sale to employees, the records should contain data from which the
average net investment in inventory can be determined.
(2) No particular degree of itemization is prescribed. However, the
amount of detail shown in these accounts should be consistent with good
accounting practices, and should be sufficient to enable the
Administrator or authorized representative to verify the nature of the
expenditure and the amount by reference to the basic records which must
be preserved pursuant to Sec. 516.6(c)(2).
(b) If additions to or deductions from wages paid (1) so affect the
total cash wages due in any workweek (even though the employee actually
is paid on other than a workweek basis) as to result in the employee
receiving less in cash than the applicable minimum hourly wage, or (2)
if the employee works in excess of the applicable maximum hours standard
and (i) any additions to the wages paid are a part of wages, or (ii) any
deductions made are claimed as allowable deductions under sec. 3(m) of
the Act, the employer shall maintain records showing on a workweek basis
those additions to or deductions from wages. (For legal deductions not
claimed under sec. 3(m) and which need not be maintained on a workweek
basis, see part 531 of this chapter.)
(c) The records specified in this section are not required with
respect to an employee in any workweek in which the employee is not
subject to the overtime provisions of the Act and receives not less than
the applicable statutory minimum wage in cash for all hours worked in
that workweek. (The application of section 3(m) of the Act in
nonovertime weeks is discussed in part 531 of this chapter.)
