(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). 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.
