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ABA Family Legal Guide

Law and the Workplace

On the Job

Wages and Hours

What types of credits is an employer allowed to take against the wage owed?

The employer can credit the reasonable cost of board, lodging, and other facilities customarily provided to employees. In order to credit the cost of such noncash benefits, they must be furnished for the worker's convenience and must be voluntarily accepted by the worker. Examples of noncash items whose fair value can be credited to the minimum wage owed are

  • meals furnished at the company cafeteria,
  • housing furnished by the company for residential purposes, and
  • fuel or electricity used by the employee for nonbusiness purposes.

    Employers who have a policy of requiring workers to pay for breakage or cash shortages cannot take such amounts as credit toward the minimum wage owed. Nor are employee discounts allowed as credits toward minimum wage.

  • American Bar Association Family Legal Guide
    Copyright © 2004 American Bar Association
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