Section 35 Nondeductible Facilities, Including Uniforms

LibraryEmployer-Employee Law 2008

If an employer furnishes facilities to employees that are primarily for the benefit or convenience of the employer, the cost of the facilities cannot be included in computing wages. 29 C.F.R. § 531.3(d)(1). Among facilities that have been found to be primarily for the benefit or convenience of the employer are:

  • tools of the trade and other materials and services incidental to carrying on the employer’s business

  • the cost of uniforms, their rental, and their laundering, when the nature of the business requires the employee to wear a uniform

  • safety caps, explosives, and miners’ lamps

  • company police and security guard protection

  • transportation charges when the transportation is incidental and necessary to the employment, as in the case of maintenance-of-way employees of a railroad; and

  • medical services and hospitalization that the employer is bound to furnish under workers’ compensation acts or similar federal, state, or local law.

29 C.F.R. § 531.32.

See:

  • Arriaga v. Fla. Pac. Farms, L.L.C., 305 F.3d 1228
    (11th Cir. 2002) (visa and immigration fees and costs of transporting farm workers from Mexico to Florida were costs primarily for the benefit or convenience of the employer, so employers were required to reimburse the workers for such costs during the first workweek so that their wages were at least equivalent to minimum wage)

  • ...

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