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Deductions made under the circumstances or in the situations described in the paragraphs of this section may be made
<br />without application to and approval of the Secretary of Labor:
<br />(a) Any deduction made in compliance with the requirements of Federal, State, or local law, such as Federal or
<br />State withholding income taxes and Federal social security taxes.
<br />(b) Any deduction of sums previously paid to the employee as a bona fide prepayment of wages when such
<br />prepayment is made without discount or interest. A°bona fide prepayment of wages" is considered to have been made
<br />only when cash or its equivafent has been advanced to the person employed in such manner as to give him complete
<br />freedom of disposition of the advanced funds.
<br />(c) Any deduction of arnounts required by court process to be paid to another, unless, the deduction is in favor of
<br />the contractor, subcontractor or any affiliated person, or when collusion or collaboration exists.
<br />(d) Any deduction constituting a contribution on behalf of the person employed to funds established by the
<br />employer or representatives of employees, or both, for the purpose of providing either from principal or income, or both,
<br />medicaf or hospital care, pensions, or annuities on retirement, death benefits, compensation for injuries, illness, accidents,
<br />sickness, or disability, or for insurance to provide any of the foregoing, or unemployment benefits, vacation pay, savings
<br />accounts, or similar payments for the benefit of employees, their families and dependents: Provided, however, That the
<br />following standards are met: (1) The deduction is not otherwise prohibited by law; (2) it is either: (i) Voluntarily consented
<br />to by the employee in writing and in advance of the period in which the work is to be done and such consent is not a
<br />condition either for the obtaining of or for the continuation of employment, or (ii) provided for in a bona fide collective
<br />bargaining agreement between the contractor or subcontractor and representatives of its employees; (3) no profit or other
<br />benefit is otherwise obtained, directly or indirectly, by the contractor or subcontractor or any affiliated person in the form of
<br />commission, dividend, or otherwise; and (4) the deductions shall serve the convenience and interest of the employee.
<br />(e) Any deduction contributing toward the purchase of United States Defense Stamps and Bonds when
<br />voluntarily authorized by the employee.
<br />(f) Any deduction requested by the employee to enable him to repay loans to or to purchase shares in credit
<br />unions organized and operated in accordance with Federal and State credit union statutes.
<br />(g) Any deduction voluntarily authorized by the emp{oyee for the making of contributions to governmental or
<br />quasi-governmental agencies, such as the American Red Cross.
<br />(h) Any deduction voluntarily authorized by the employee for the making of contributions to Community Chests,
<br />United Givers Funds, and similar charitable organizations.
<br />(i) Any deductions to pay regular union initiation fees and membership dues, not including fines or special
<br />assessments: Provided, however, That a collective bargaining agreement between the contractor or subconiractor and
<br />representatives of its employees provides for such deductions and the deductions are not otherwise prohibited by law.
<br />(j) Any deduction not more than for the "reasonable cost" of board, lodging, or other facilities meeting the
<br />requirements of section 3(m) of the Fair Labor Standards Act of 1938, as amended, and Part 531 of this titie. When such
<br />a deduction is made the additional records required under §516.27(a) of this title shall be kept.
<br />(k) Any deduction for the cost of safety equipment of nominal value purchased by the employee as his own
<br />property for his personal protection in his work, such as safety shoes, safety glasses, safety gloves, and hard hats, if such
<br />equipment is not required by law to be furnished by the employer, if such deduction is not violative of the Fair Labor
<br />Standards Act or prohibited by other law, if the cost on which the deduction is based dces not exceed the actual cost to
<br />the employer where the equipment is purchased from him and does not include any direct or indirect monetary return to
<br />the employer where the equipment is purchased from a third person, and if the deduction is either (1) voluntarily
<br />consented to be the employee in writing and in advance of the period in which the work is to be done and such consent is
<br />not a condition either for the obtaining of employment or its continuance; or (2) provided for in a bona fide collective
<br />bargaining agreement between the contractor or subcontractor and representatives of its employees.
<br />{36 F.R. 9770, May 28, 1971.}
<br />Section 3.6Payroll deductlons permissible with the approval of the Secretary of Labor.
<br />Any contractor or subcontractor may apply to the Secretary of Labor for permission to make any deduction not permitted
<br />under §3.5. The Secretary may grant permission whenever Me finds that:
<br />(a) The contractor, subcontractor, or any affiliated person does not make a profit or benefit directly or indirectly
<br />from the deduction either in the form of a commission, dividend, or otherwise;
<br />(b) The deduction is not otherwise prohibited by law;
<br />(c) The deduction is either (1) voluntarily consented to by the employee in writing and in advance of the period in
<br />which the work is to be done and such consent is not a condition either for the obtaining of employment or its continuance,
<br />or (2) provided for in a bona fide collective bargaining agreement between the contractor or subcontractor and
<br />representatives of its employees; and
<br />(d) The deduction serves the convenience and interest of the employee.
<br />Section 3.7Applications for the approval of the Secretary of Labor.
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