Or. Admin. R. 839-020-0025 - Deductions for Meals, Lodging, Facilities or Other Services
(1) The fair market
value of meals, lodging and other facilities or services furnished by the
employer to the employee for the private benefit of the employee may be
deducted from the minimum wage. The employer has the burden of establishing the
fair market value (See also OAR
839-020-0004(16)).
(2) "Fair market value" may be
established in either of the following ways:
(a) The amount actually and customarily
charged for comparable meals, lodging, facilities or services to consumers who
are not employees of the employer; or
(b) The actual cost to the employer in
purchasing, preparing or providing the meals, lodging or other facilities or
services.
(3) The
provisions of section (1) of this rule do not prohibit the payment of wages as
meals, lodging and other facilities or services furnished to employees either
as additions to wages or as items for which deductions from wages will be made.
These provisions apply to all facilities or services furnished by the employer
as compensation to the employee regardless of whether the employer calculates
charges for such facilities or services as additions to or deductions from
wages. In order for the employer to be able to claim credit toward the minimum
wage for providing meals, lodging or other facilities or services furnished to
an employee, the deduction of these costs from the employee's wages must have
been authorized by the employee in writing, the deduction must have been for
the private benefit of the employee, and the deduction must be recorded in the
employer's books, or the deduction of these costs must be authorized by a
collective bargaining agreement, in accordance with the provisions of ORS
652.610.
(4) Full settlement of sums owed to the
employer by the employee because of meals, lodging and other facilities or
services furnished by the employer shall be made on each regular payday.
(5) The provisions of section (1)
of this rule apply only when the following conditions are continuously met:
(a) The employer has met the conditions of
ORS 652.610(3); and
(b) The employee actually receives
the meals, lodging or other facilities or services; and
(c) The meals, lodging or other facilities or
services are furnished by the employer for the private benefit of the employee;
and
(d) The meals, lodging or
other facilities and services are provided in a lawful manner. No deduction
from the minimum wage may be made for alcohol provided without applicable
permits, for illegal substances or services, such as drugs or prostitution, or
for any other substance, facility or service which is provided in a manner
determined by a court or appropriate administrative agency to have been
unlawful.
(6) As used
in this rule, meals actually received by the employee and furnished by the
employer are regarded as being for the private benefit of the employee except
when meal expenses are incurred by an employee while traveling away from the
employee's home on the employer's business.
(7) Lodging or other facilities or services
are furnished for the private benefit of the employee when such lodging or
other facilities or services are not required by the employer. For purposes of
this rule, lodging or other facilities or services are required by the employer
when:
(a) Acceptance of the lodging or other
facilities or services is a condition of the employee's employment; or
(b) The expense is incurred by an
employee who must travel away from the employee's home on the employer's
business; or
(c) The acceptance of
the lodging or other facilities or services is involuntary or coerced; or
(d) The provision of lodging or
other facilities or services is necessary in order for the employer to maintain
an adequate work force at the times and locations the employer needs
them.
Notes
Stat. Auth.: ORS 651.060(4) & 653.040
Stats. Implemented: 2013 SB 135, ORS 653
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.