(a)

1. (1) An employer of an employee engaged in an occupation in which board, lodging, apparel, or other items and services are customarily and regularly furnished to the employee for his or her benefit is entitled to an allowance against the minimum wage for the reasonable value of board, lodging, apparel, or other items and services in an amount not to exceed the fair and reasonable cost of the board, lodging, apparel, or other items and services.
2. (2) This allowance shall not be included in the wages for hours worked in excess of forty (40) hours per workweek.

(b)

1. (1) Board, lodging, apparel, or other items and services are not furnished to the employee unless:

   1. (A) The employee receives the benefit; and
   2. (B) His or her acceptance is voluntary and uncoerced.
2. (2) For example, an allowance cannot be taken for meals not actually eaten.

(d)

1. (1) The determination of reasonable cost shall be based on 29 U.S.C. § 203(m), as it existed on January 1, 2019, and 29 C.F.R. § 531.
2. (2) “Reasonable cost” does not include a profit to the employer and is not more than the actual cost to the employer of the board, lodging, apparel, or other item or service.

(e)

1. (1) The employer is not entitled to an allowance for the cost of board, lodging, apparel, or other items and services furnished to the employee, but primarily for the benefit of the employer.
2. (2) Apparel that has a company or business logo shall be considered primarily for the benefit of the employer.

(f)

1. (1) The employer is not entitled to an allowance for the cost of board, lodging, apparel, or other items and services that are required by the employer as a condition of employment.
2. (2) For example, if an employer requires, as a condition of employment, that the employee reside on the employer’s premises, a lodging allowance is unavailable to the employer.