[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR551.1]

[Page 221-222]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 551_LOCAL DELIVERY DRIVERS AND HELPERS; WAGE PAYMENT PLANS
--Table of Contents
 
Sec. 551.1  Statutory provision.




Sec.
551.1 Statutory provision.
551.2 Findings authorized by this part.
551.3 Petition for a finding.
551.4 Requirements for a petition.
551.5 Information to be submitted.
551.6 Action on petition.
551.7 Finding.
551.8 Definitions.
551.9 Recordkeeping requirements.

    Authority: Sec. 9, 75 Stat. 74; 29 U.S.C. 213(b).

    Source: 30 FR 8585, July 7, 1965, unless otherwise noted.


    The following provision for exemption from the overtime pay 
provision is contained in section 13(b) of the Fair

[[Page 222]]

Labor Standards Act of 1938, as amended (29 U.S.C. 213(b)):

    (b) The provisions of section 7 shall not apply with respect to:

                                * * * * *

    (11) any employee employed as a driver or driver's helper making 
local deliveries, who is compensated for such employment on the basis of 
trip rates, or other delivery payment plan, if the Secretary shall find 
that such plan has the general purpose and effect of reducing hours 
worked by such employees to, or below, the maximum workweek applicable 
to them under section 7(a).


Under this provision, an employee employed and compensated as described 
in the quoted paragraph (11) may be employed without payment of overtime 
compensation for a workweek longer than the maximum workweek applicable 
to him under section 7(a) of the Act, but only if it is established by a 
finding of the Secretary that the employee is compensated for his 
employment as a driver or driver's helper making local deliveries on the 
basis of trip rates or other delivery payment plan that has the general 
purpose and effect stated in section 13(b)(11). Such a finding is 
prescribed by the statute as one of the ``explicit prerequisites to 
exemption''. (See Arnold v. Kanowsky, 361 U.S. 388, 392.)