[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: 29CFR778.216]

[Page 378]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 778_OVERTIME COMPENSATION--Table of Contents
 
    Subpart C_Payments That May Be Excluded From the ``Regular Rate''
 
Sec. 778.216  The provisions of section 7(e)(2) of the Act.

    Section 7(e)(2) of the Act provides that the term ``regular rate'' 
shall not be deemed to include ``payments made for occasional periods 
when no work is performed due to vacation, holiday, illness, failure of 
the employer to provide sufficient work, or other similar cause; 
reasonable payments for traveling expenses, or other expenses, incurred 
by an employee in the furtherance of his employer's interests and 
properly reimbursable by the employer; and other similar payments to an 
employee which are not made as compensation for his hours of employment 
* * *.'' However, since such payments are not made as compensation for 
the employee's hours worked in any workweek, no part of such payments 
can be credited toward overtime compensation due under the Act.