Deductions made under the circumstances or in the situations
described in the paragraphs of this section may be made without
application to and approval of the Secretary of Labor:
(a) Any deduction made in compliance with the requirements of
Federal, State, or local law, such as Federal or State withholding
income taxes and Federal social security taxes.
(b) Any deduction of sums previously paid to the employee as a bona
fide prepayment of wages when such prepayment is made without discount
or interest. A bona fide prepayment of wages is considered to have been
made only when cash or its equivalent has been advanced to the person
employed in such manner as to give him complete freedom of disposition
of the advanced funds.
(c) Any deduction of amounts required by court process to be paid to
another, unless the deduction is in favor of the contractor,
subcontractor, or any affiliated person, or when collusion or
collaboration exists.
(d) Any deduction constituting a contribution on behalf of the
person employed to funds established by the employer or representatives
of employees, or both, for the purpose of providing either from
principal or income, or both, medical or hospital care, pensions or
annuities on retirement, death benefits, compensation for injuries,
illness, accidents, sickness, or disability, or for insurance to provide
any of the foregoing, or unemployment benefits, vacation pay, savings
accounts, or similar payments for the benefit of employees, their
families and dependents: Provided, however, That the following standards
are met:
(1) The deduction is not otherwise prohibited by law;
(2) It is either:
(i) Voluntarily consented to by the employee in writing and in
advance of the period in which the work is to be done and such consent
is not a condition either for the obtaining of or for the continuation
of employment, or
(ii) provided for in a bona fide collective bargaining agreement
between the contractor or subcontractor and representatives of its
employees;
(3) No profit or other benefit is otherwise obtained, directly or
indirectly, by the contractor or subcontractor or any affiliated person
in the form of commission, dividend, or otherwise; and
(4) The deductions shall serve the convenience and interest of the
employee.
(e) Any deduction contributing toward the purchase of United States
Defense Stamps and Bonds when voluntarily authorized by the employee.
(f) Any deduction requested by the employee to enable him to repay
loans to or to purchase shares in credit unions organized and operated
in accordance with Federal and State credit union statutes.
(g) Any deduction voluntarily authorized by the employee for the
making of contributions to governmental or quasi-governmental agencies,
such as the American Red Cross.
(h) Any deduction voluntarily authorized by the employee for the
making of contributions to Community Chests, United Givers Funds, and
similar charitable organizations.
(i) Any deductions to pay regular union initiation fees and
membership dues, not including fines or special assessments: Provided,
however, That a collective bargaining agreement between the contractor
or subcontractor and representatives of its employees provides for such
deductions and the deductions are not otherwise prohibited by law.
(j) Any deduction not more than for the ``reasonable cost'' of
board, lodging, or other facilities meeting the requirements of section
3(m) of the Fair Labor Standards Act of 1938, as amended, and part 531
of this title. When such a deduction is made the additional records
required under Sec. 516.25(a) of this title shall be kept.
(k) Any deduction for the cost of safety equipment of nominal value
purchased by the employee as his own property for his personal
protection in his work, such as safety shoes, safety glasses, safety
gloves, and hard hats, if such equipment is not required by law to be
furnished by the employer, if such deduction is not violative of the
Fair Labor Standards Act or prohibited by other law, if the cost on
which the deduction is based does not exceed the actual cost to the
employer where the equipment is purchased from him and does not include
any direct or indirect monetary return to the employer where the
equipment is purchased from a third person, and if the deduction is
either
(1) Voluntarily consented to by the employee in writing and in
advance of the period in which the work is to be done and such consent
is not a condition either for the obtaining of employment or its
continuance; or
(2) Provided for in a bona fide collective bargaining agreement
between the contractor or subcontractor and representatives of its
employees.
[29 FR 97, Jan. 4, 1964, as amended at 36 FR 9770, May 28, 1971]
