Ariz. Admin. Code § R6-3-1727 - Meals or Lodging As Wages

A. The money value of board or lodging, or both, furnished a worker shall be the reasonable cash value thereof as determined by the Department. In arriving at the reasonable cash value, the Department shall consider the cost to persons other than the employee of similar goods and services in the vicinity. Unless in a given case a rate for board and lodging is determined by the Department, board or lodging furnished shall be deemed to have not less than the following values:

Breakfast $1.25

Lunch $1.50

Dinner $2.00

Lodging - per day $4.00

Meals only - per month $142.50

Lodging only - per month $120.00

Full room and board - monthly $262.50

B. The term "wages" does not include the value of any meals or lodging furnished to an employee by the employer for the convenience of the employer if, in the case of meals, the meals are furnished on the business premises of the employer, or in the case of lodging, the employee is required to accept such lodging on the business premises of the employer as a condition of his employment.

1. Meals will be regarded as furnished for the convenience of the employer when they are furnished during regular working hours to have the employee on call during the meal period, or they are furnished during regular working hours because the employer's business is such that the employee could not be expected to eat elsewhere in such a short period, or they are furnished during regular working hours because the employee could not otherwise secure meals in the area in which he works. Meals furnished before or after the working hours of the employee will not be regarded as furnished for the convenience of the employer except when they are furnished to a restaurant employee or other food service employee for each meal period in which the employee works, provided the meal is furnished immediately before or immediately after the working hours of the employee. Meals furnished on days in which the employee performs no services will not be regarded as furnished for the convenience of the employer unless they are furnished in connection with lodging which is furnished for the convenience of the employer.

2. Lodging an employee is required to accept on the business premises of the employer as a condition of his employment will be regarded as furnished for the convenience of the employer when the employee is required to be available for duty at all times, or the employee could not perform the services required of him unless furnished such lodging. Lodging furnished an employee providing managerial, maintenance or security services in an apartment of similar residential complex will be regarded as furnished for the convenience of the employer.

3. Meals or lodging furnished an employee will not be deemed furnished for the convenience of the employer if the employee has the option of receiving other compensation in lieu of meals or lodging or if the employer reduces the cash wages of the employee or otherwise charges for the meals or lodging provided.

Notes

Ariz. Admin. Code § R6-3-1727

Adopted effective March 16, 1988 (Supp. 88-1).