Yes, if the value deducted is a reasonable estimate of the actual cost. Under the FLSA, the pay you receive must be in the form of cash or something that can be readily converted into cash or other legal forms of compensation, such as food and lodging. This means that an employer may include the reasonable cost of furnishing board, lodging, or other facilities. This rule applies when the employer pays for the benefit, and if the employer customarily furnishes such board, lodging, or other facilities. Not only must the employee receive the benefits of the facility for which he is charged, but it is essential that his acceptance of the facility be voluntary and uncoerced. Whether a value is reasonable is determined by the Secretary of Labor. For example, you are provided with lodging worth an estimated $250 per month, based on other rents in the area. Your employer can count that $250 towards your rate of pay, but could not deduct $500 if that rate was not the reasonable value of the lodging provided.