TN 10 (09-90)
RS 01402.240 Meals And Lodging
Act, Sec. 209(a)(16);
20 CFR 404.1043.
1. Business Premises of the Employer
For purposes of the convenience-of-the-employer rule, the term “business premises of the employer” generally means the place of employment of the employee. For example, meals furnished to cowhands while herding their employer's cattle on leased land would be regarded as furnished on the business premises of the employer.
2. Convenience of the Employer
The value of furnished meals will be considered furnished for the “convenience of the employer” under certain circumstances, including the following:
The employee is available for emergency calls during the meal period.
The employee is restricted to a short meal period and cannot be expected to eat elswhere in that period.
The meals are furnished during working hours because the employee could not secure proper meals within a reasonable period; e.g., because of insufficient eating facilities in the vicinity of the employer's premises.
Meals furnished to restaurant or food service employees for each meal period in which the employees eat during their working hours or immediately before or after the working hours.
3. Acceptance of Lodging as Condition of Employment
An employee is required to accept the lodging in order to perform the duties of the employment.
The value of meals and lodging is not wages if furnished:
On the business premises of the employer, and
For the convenience of the employer, and
In the case of lodging, the employee is required to accept lodging as a condition of employment.
NOTE: Sec. 209(a)(16) of the act does not affect the wage status of the value of meals or lodging where there is a specific statutory provision mandating the treatment as wages. As with religious orders the value of food, lodging, clothing, etc., furnished the members is deemed to be wages (RS 01901.620).