29 C.F.R. § 778.216

The provisions of section 7(e)(2) of the Act

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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.

Notes of Decisions
Cited in 8 cases (2 in the last 5 years), 1989–2026 · leading case: Powell v. Carey Int'l, Inc., 514 F. Supp. 2d 1302 (S.D. Fla. 2007).
Powell v. Carey Int'l, Inc., 514 F. Supp. 2d 1302 (S.D. Fla. 2007). “§ 207 (e) and its administrative interpretation in 29 C.F.R. §§ 778.216 14 and 778.217, 15 and were incurred by the employee on the employer’s behalf and, thus, were not compensation for services for purposes of calculating the Regular Rate.”
Robbins v. Bureau of Nat. Affairs, Inc., 896 F. Supp. 18 (D.D.C. 1995). “" 29 C.F.R. §§ 778.216 , 785.1-.9. Although not clear, these terms appear to be interchangeable.”
Farris v. Cnty. of Riverside, 667 F. Supp. 2d 1151 (C.D. Cal. 2009). “” 29 C.F.R. 778.216. Further, the parties dispute when the applicable claims period began.”
Wheeler v. Hampton Twp., 399 F.3d 238 (3rd Cir. 2005). “1976) (holding under section 7(h) that fringe benefits including “paid vacations, six holidays with pay each year, [and] biannual bonuses” could not be “credited against” FLSA-required overtime compensation); 29 C.F.R. § 778.216 ("since [non-work] payments are not made as…”
Carlino v. CHG Med. Staffing, Inc. (E.D. Cal. 2020). “” 29 C.F.R. § 778.216 (emphasis added). Similarly, the 17 regulation interpreting the “Other similar payments” clause of § 207(e)(2) and titled the same, 18 provides that the eight regulations immediately preceding it—which includes the regulation 19 interpreting “Reimbursement…”
Bradford v. Team Pizza, Inc. (S.D. Ohio 2021). “See also 29 C.F.R. § 778.216 . ° This section specifies that the examples listed in subsection (b) are illustrative rather than exhaustive.”
Timothy Goins, Individually & for Others Similarly Situated v. Wolverine Fuels, LLC (D. Utah 2026). “§ 207(h)(2); 29 C.F.R. § 778.216 (“[S]ince such payments are not made as compensation for the employee’s hours worked in any workweek, no part of such payment can be credited toward overtime compensation under the Act”).”
Am. Fed'n of Gov't Employees, Local 3721 v. Dist. of Columbia, 715 F. Supp. 391 (D.D.C. 1989). “” 29 C.F.R. § 778.216 ; see also id. at § 778.”
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