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TITLE 26-INTERNAL REVENUE CODE § 119. Meals or lodging furnished for the convenience of the employer There shall be excluded from gross income of an employee the value of any meals or lodging furnished to him by his employer for the conve- nience of the employer, but only if- (1) in the case of meals, the meals are fur- nished on the business premises of the em- ployer, or (2) in the case of lodging, the employee is required to accept such lodging on the busi- ness premises of his employer as a condition of his employment. In determining whether meals or lodging are furnished for the convenience of the employer, the provisions of an employment contract or of a State statute fixing terms of employment shall not be determinative of whether the meals or lodging are intended as compensation. (Aug. 16, 1954, ch. 736, 68A Stat. 39.) SECTION REFERRE TO IN OTHER SECTIONS This section is referred to in sections 280A, 1402 of this title; title 42 section 411. § 120. Amounts received under qualified group legal services plans (a) Exclusion by employee for contributions and legal services provided by employer Gross income of an employee, his spouse, or his dependents, does not include-- (1) amounts contributed by an employer on behalf of an employee, his spouse, or his de- pendents under a qualified group legal ser- vices plan (as defined in subsection (b)); or (2) the value of legal services provided, or amounts paid for legal services, under a quali- fied group legal services plan (as defined in subsection (b)) to, or with respect to, an em- ployee, his spouse, or his dependents. (b) Qualified group legal services plan For purposes of this section, a qualified group legal services plan is a separate written plan of an employer for the exclusive benefit of his em- ployees or their spouses or dependents to pro- vide such employees, spouses, or dependents with specified benefits consisting of personal legal services through prepayment of, or provi- sion in advance for, legal fees in whole or in part by the employer, if the plan meets the re- quirements of subsection (c). (c) Requirements (1) Discrimination The contributions or benefits provided under the plan shall not discriminate in favor of employees who are officers, shareholders, self-employed individuals, or highly compen- sated. (2) Eligibility The plan shall benefit employees who quali- fy under a classification set up by the em- ployer and found by the Secretary not to be discriminatory in favor of employees who are described in paragraph (1). For purposes of this paragraph, there shall be excluded from consideration employees not included in the plan who are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and one or more employers, if there is evi- dence that group legal services plan benefits were the subject of good faith bargaining be- tween such employee representatives and such employer or employers. (3) Contribution limitation Not more than 25 percent of the amounts contributed under the plan during the year may be provided for the class of individuals who are shareholders or owners (or their spouses or dependents), each of whom (on any day of the year) owns more than 5 per- cent of the stock or of the capital or profits interest in the employer. (4) Notification The plan shall give notice to the Secretary, in such manner as the Secretary may by regu- lations prescribe, that it is applying for recog- nition of the status of a qualified group legal services plan. (5) Contributions Amounts contributed under the plan shall be paid only (A) to insurance companies, or to organizations or persons that provide person- al legal services, or indemnification against the cost of personal legal services, in ex- change for a prepayment or payment of a premium, (B) to organizations or trusts de- scribed in section 501(c)(20), (C) to organiza- tions described in section 501(c) which are permitted by that section to receive payments from an employer for support of one or more qualified group legal services plan or plans, except that such organizations shall pay or credit the contribution to an organization or trust described in section 501(c)(20), (D) as prepayments to providers of legal services under the plan, or (E) a combination of the above. (d) Other definitions and special rules For purposes of this section- (1) Self-employed individual; employee The term "self-employed individual" means, and the term "employee" includes, for any year, an individual who is an employee within the meaning of section 401(c)(1) (relating to self-employed individuals). (2) Employer An individual who owns the entire interest in an unincorporated trade or business shall be treated as his own employer. A partner- ship shall be treated as the employer of each partner who is an employee within the mean- ing of paragraph (1). (3) Allocations Allocations of amounts contributed under the plan shall be made in accordance with regulations prescribed by the Secretary and shall take into account the expected relative utilization of benefits to be provided from such contributions or plan assets and the manner in which any premium or other charge was developed. (4) Dependent The term "dependent" has the meaning given to it by section 152. Page 127 § 120