Public or private, technically it's true. Just went through same thing. It's based on the frequency of the "gift".
An example of it being taxed is if the employee plays golf on a regular frequency. I.e. once a week. If it is less than that, it shouldn't be taxed.
Hiring someone and paying them in free golf is a taxable benefit, and also falls under the wage and hour section of the Department of Labor code.
IRS tax code is found here:
https://www.irs.gov/government-entities/federal-state-local-governments/de-minimis-fringe-benefits