Section 3(m) of the Act provides that as used in the Act, ``wage''
paid to any employee:
includes the reasonable cost, as determined by the Secretary of
Labor, to the employer of furnishing such employee with board,
lodging, or other facilities, if such board, lodging or other facilities
are customarily furnished by such employer to his employees: Provided,
That the cost of board, lodging, or other facilities shall not be
included as a part of the wage paid to any employee to the extent it is
excluded therefrom under the terms of a bona fide collective-bargaining
agreement applicable to the particular employee: Provided further, That
the Secretary is authorized to determine the fair value of such board,
lodging, or other facilities for defined classes of employees and in
defined areas, based on average cost to the employer or to groups of
employers similarly situated, or average value to groups of employees,
or other appropriate measures of fair value. Such evaluations, where
applicable and pertinent, shall be used in lieu of actual measure of
cost in determining the wage paid to any employee. In determining the
wage of a tipped employee, the amount paid such employee by his employer
shall be deemed to be increased on account of tips by an amount
determined by the employer, but not by an amount in excess of 50 per
centum of the applicable minimum wage rate, except that in the case of
an employee who (either himself or acting through his representative)
shows to the satisfaction of the Secretary that the actual amount of
tips received by him was less than the amount determined by the employer
as the amount by which the wage paid him was deemed to be increased
under this sentence, the amount paid such employee by his employer shall
be deemed to have been increased by such lesser amount.
As explained in part 531 of this chapter, section 3(m) of the Act
governs the payment of wages required by the Act, including payment in
other than cash and in tips. Part 531 of this chapter contains the
regulations under which the reasonable cost or fair value of such
facilities furnished may be computed for inclusion as part of wages
required by the Act. Section 3(m) provides a method for determining the
wage of a ``tipped employee'' and this term as defined in section 3(t)
of the Act ``means any employee engaged in an occupation in which he
customarily and regularly receives more than $20 a month in tips''.
Regulations under which wage credits are permitted on account of tips
paid to ``tipped employees'' are also contained in part 531 of this
chapter.
