(a) Section 3(m) of the Act defines the term ``wage'' to include the
``reasonable cost'', as determined by the Secretary of Labor, to an
employer of furnishing any employee with board, lodging, or other
facilities, if such board, lodging, or other facilities are customarily
furnished by the employer to his employees. In addition, section 3(m)
gives the Secretary authority to determine the ``fair value.'' of such
facilities on the basis of average cost to the employer or to groups of
employers similarly situated, on average value to groups of employees,
or other appropriate measures of ``fair value.'' Whenever so determined
and when applicable and pertinent, the ``fair value'' of the facilities
involved shall be includable as part of ``wages'' instead of the actual
measure of the costs of those facilities. The section provides, however,
that the cost of board, lodging, or other facilities shall not be
included as part of ``wages'' if excluded therefrom by a bona fide
collective bargaining agreement. Section 3(m) also provides a method for
determining the wage of a tipped employee.
(b) This part 531 contains any determinations made as to the
``reasonable cost'' and ``fair value'' of board, lodging, or other
facilities having general application, and describes the procedure
whereby determinations having general or particular application may be
made. The part also interprets generally the provisions of section 3(m)
of the Act, including the term ``tipped employee'' as defined in section
3(t).
