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Content Last Revised: 7/7/65
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CFR  

Code of Federal Regulations Pertaining to ESA

Title 29  

Labor

 

Chapter V  

Wage and Hour Division, Department of Labor

 

 

Part 551  

Local Delivery Drivers and Helpers; Wage Payment Plans


29 CFR 551.1 - Statutory provision.

  • Section Number: 551.1
  • Section Name: Statutory provision.

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

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