OAR 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.