(a) Section 3(m) directs the Administrator to determine ``the
reasonable cost * * * to the employer of furnishing * * * facilities''
to the employee, and in addition it authorizes him to determine ``the
fair value'' of such facilities for defined classes of employees and in
defined areas, which may be used in lieu of the actual measure of the
cost of such facilities in ascertaining the ``wages'' paid to any
employee. Subpart B contains three methods whereby an employer may
ascertain whether any furnished facilities are a part of ``wages''
within the meaning of section 3(m): (1) An employer may calculate the
``reasonable cost'' of facilities in accordance with the requirements
set forth in Sec. 531.3; (2) an employer may request that a
determination of ``reasonable cost'' be made, including a determination
having particular application; and (3) an employer may request that a
determination of ``fair value'' of the furnished facilities be made to
be used in lieu of the actual measure of the cost of the furnished
facilities in assessing the ``wages'' paid to an employee.
(b) ``Reasonable cost,'' as determined in Sec. 531.3 ``does not
include a profit to the employer or to any affiliated person.'' Although
the question of affiliation is one of fact, where any of the following
persons operate company stores or commissaries or furnish lodging or
other facilities they will normally be deemed ``affiliated persons''
within the meaning of the regulations: (1) A spouse, child, parent, or
other close relative of the employer; (2) a partner, officer, or
employee in the employer company or firm; (3) a parent, subsidiary, or
otherwise closely connected corporation; and (4) an agent of the
employer.
