CFR |
Code of Federal Regulations Pertaining to U.S. Department of
Labor |
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Chapter
V |
Wage and Hour Division, Department of Labor |
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Part
541 |
Defining and Delimiting the Exemptions for Executive,
Administrative, Professional, Computer and Outside Sales Employees |
- 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.
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