(a) Standing alone, sections 6 and 7 of the Act require payments of
the prescribed wages, including overtime compensation, in cash or
negotiable instrument payable at par. Section 3(m) provides, however,
for the inclusion in the ``wage'' paid to any employee, under the
conditions which it prescribes of the ``reasonable cost,'' or ``fair
value'' as determined by the Secretary, of furnishing such employee with
board, lodging, or other facilities. In addition, section 3(m) provides
that a tipped employee's wages may consist in part of tips. It is
section 3(m) which permits and governs the payment of wages in other
than cash.
(b) It should not be assumed that because the term ``wage'' does not
appear in section 7, all overtime compensation must be paid in cash and
may not be paid in board, lodging, or other facilities. There appears to
be no evidence in either the statute or its legislative history which
demonstrates the intention to provide one rule for the payment of the
minimum wage and another rule for the payment of overtime compensation.
The principles stated in paragraph (a) of this section are considered
equally applicable to payment of the minimum hourly wage required by
section 6 or of the wages required by the equal pay provisions of
section 6(d), and to payment, when overtime is worked, of the
compensation required by section 7. Thus, in determining whether he has
met the minimum wage and overtime requirements of the Act, the employer
may credit himself with the reasonable cost to himself of board,
lodging, or other facilities customarily furnished by him to his
employees when the cost of such board, lodging, or other facilities is
not excluded from wages paid to such employees under the term of a bona
fide collective bargaining agreement applicable to the employees. Unless
the context clearly indicates otherwise, the term ``wage'' is used in
this part to designate the amount due under either section 6 or section
7 without distinction. It should be remembered, however, that the wage
paid for a job, within the meaning of
the equal pay provisions of section 6(d), may include remuneration for
employment which is not included in the employee's regular rate of pay
under section 7(e) of the act or is not allocable to compensation for
hours of work required by the minimum wage provisions of section 6.
Reference should be made to parts 778 and 800 of this chapter for a more
detailed discussion of the applicable principles.
(c) Tips may be credited or offset against the wages payable under
the Act in certain circumstances, as discussed later in this subpart.
See also the recordkeeping requirements contained in part 516 of this
chapter.
