Subsistence allowances paid under Public Law 346 (commonly known as
the G.I. bill of rights) to a veteran employed in on-the-job training
program work may not be used to offset the wages to which he is entitled
under the Fair Labor Standards Act. The subsistence allowances provided
by Public Law 346 for payment to veterans are not paid as compensation
for services rendered to an employer nor are they intended as subsidy
payments for such employer. In order to qualify as wages under either
section 6 or section 7 of the Act, sums paid to an employee must be paid
by or on behalf of the employer. Since veterans' subsistence allowances
are not so paid, they may not be used to make up the minimum wage or
overtime pay requirements of the Act nor are they included in the
regular rate of pay under section 7.
