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Free room & board count towards min wage credit? New York

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  • Free room & board count towards min wage credit? New York

    I know that for an exempt employee, per 29CFR541.606, board, and lodging cannot be counted or used as min wage credit.

    What about for a non-exempt/salaried person? Here is the deal:
    1) non-exempt, salaried person, earns $ 11,800 per year
    2) obviously this works out to well below the minimum wage (we are in NY - so hourly is $ 7.15 per hou)
    3) this person lives at the facility (a therapeutic riding center), and is provided a home for free, on the grounds.
    4) the home is attached to the office (in case that matters). we make sure when she is "off the clock" she is not disturbed)
    5) she is the barn manager
    6) she also gets free utilities, hot water, etc - pays only phone)

    This is a not-for-profit establishment

    While it is good for he operation for her to be on property, and preferred, I think she also would prefer to live on site...housing in our area is expensive, and it is a nice place where she and her family can live...

    We also allow her to board here horse at the facility and we pay for all vet and other charges...can we count this as well???? (towards min wage credit?)
    I am inclined to think we cannot for the horse and board, but yes for her home and utilities

    If we have her sign something that says she WANTS to live there, can we calculate the fair value of the room and board, and used it as credit to bring her up to minimum wage? (I looked at 29 CFR 531.1

    Also, since she is non-exemt, if we determine that the value of the room and board brings her up to say, $ 28,000 (including her salary), then are OT payments based on that $ 28,000, or the $ 11,800 (not miniumum wage?)

    Thanks...this is sooo confusing!

  • #2
    See here for details. http://www.dol.gov/dol/allcfr/ESA/Ti.../Subpart_B.htm

    Since the room and board are primarily for her convenience and not yours (at least from your description nothing about the job would require her to be onsite 24/7) it may count as wages.
    I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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