[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: 29CFR778.217]

[Page 378-379]
 
                             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. 778.217  Reimbursement for expenses.

    (a) General rule. Where an employee incurs expenses on his 
employer's behalf or where he is required to expend sums solely by 
reason of action taken for the convenience of his employer, section 
7(e)(2) is applicable to reimbursement for such expenses. Payments made 
by the employer to cover such expenses are not included in the 
employee's regular rate (if the amount of the reimbursement reasonably 
approximates the expenses incurred).

[[Page 379]]

Such payment is not compensation for services rendered by the employees 
during any hours worked in the workweek.
    (b) Illustrations. Payment by way of reimbursement for the following 
types of expenses will not be regarded as part of the employee's regular 
rate:
    (1) The actual amount expended by an employee in purchasing 
supplies, tools, materials, or equipment on behalf of his employer.
    (2) The actual or reasonably approximate amount expended by an 
employee in purchasing, laundering or repairing uniforms or special 
clothing which his employer requires him to wear.
    (3) The actual or reasonably approximate amount expended by an 
employee, who is traveling ``over the road'' on his employer's business, 
for transportation (whether by private car or common carrier) and living 
expenses away from home, other travel expenses, such as taxicab fares, 
incurred while traveling on the employer's business.
    (4) ``Supper money'', a reasonable amount given to an employee, who 
ordinarily works the day shift and can ordinarily return home for 
supper, to cover the cost of supper when he is requested by his employer 
to continue work during the evening hours.
    (5) The actual or reasonably approximate amount expended by an 
employee as temporary excess home-to-work travel expenses incurred (i) 
because the employer has moved the plant to another town before the 
employee has had an opportunity to find living quarters at the new 
location or (ii) because the employee, on a particular occasion, is 
required to report for work at a place other than his regular workplace.

The foregoing list is intended to be illustrative rather than 
exhaustive.
    (c) Payments excluding expenses. It should be noted that only the 
actual or reasonably approximate amount of the expense is excludable 
from the regular rate. If the amount paid as ``reimbursement'' is 
disproportionately large, the excess amount will be included in the 
regular rate.
    (d) Payments for expenses personal to the employee. The expenses for 
which reimbursement is made must in order to merit exclusion from the 
regular rate under this section, be expenses incurred by the employee on 
the employer's behalf or for his benefit or convenience. If the employer 
reimburses the employee for expenses normally incurred by the employee 
for his own benefit, he is, of course, increasing the employee's regular 
rate thereby. An employee normally incurs expenses in traveling to and 
from work, buying lunch, paying rent, and the like. If the employer 
reimburses him for these normal everyday expenses, the payment is not 
excluded from the regular rate as ``reimbursement for expenses.'' 
Whether the employer ``reimburses'' the employee for such expenses or 
furnishes the facilities (such as free lunches or free housing), the 
amount paid to the employee (or the reasonable cost to the employer or 
fair value where facilities are furnished) enters into the regular rate 
of pay as discussed in Sec. 778.116. See also Sec. 531.37(b) of this 
chapter.