TITLE 72

WORKER’S COMPENSATION AND RELATED LAWS — INDUSTRIAL COMMISSION

CHAPTER 13

EMPLOYMENT SECURITY LAW

72-1328A.  BOARD, LODGING, AND MEALS. (1) When board, lodging, meals, or any other payment-in-kind comprise, in whole or in part, an employee’s wages, the value of such board, lodging, or other payment shall be determined as follows:

(a)  If a cash value is agreed upon in any contract of hire, the amount so agreed upon shall be used if it is a reasonable fair market value. If there is no agreement or if the contract of hire states an amount less than a reasonable fair market value, the department shall determine the reasonable fair market value to be used.

(b)  The value of meals and lodging furnished by an employer to the employee shall not be included in the employee’s gross income when furnished on the employer’s business premises for the employer’s convenience and, in the case of lodging but not meals, the employees are required to accept the lodging in order to properly perform their duties and as a condition of their employment.

(c)  In order to exclude the value of lodging from an employee’s gross wages, the employer must show that the wages paid to the employee for services performed meet the prevailing wage for those services. If the employer’s records do not show or establish that the employee received the prevailing wage for services performed, then the reasonable fair market value of the lodging shall be included as wages in the employee’s gross income.

(2)  Meals or lodging furnished shall be considered for the employer’s convenience if the employer has a substantial business reason other than providing additional remuneration to the employee. A statement that the meals or lodging are not intended as remuneration is not sufficient to establish that either meals or lodging are furnished for the employer’s convenience.

(3)  In the case of employees who receive remuneration in the form of subsistence, such as groceries, staples, and fundamental shelter, the reasonable fair market value of such subsistence shall be determined by the department.

History:

[72-1328A, added 2025, ch. 29, sec. 16, p. 117.]