C.F.R. » Title 29 » CHAPTER V—WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR › SUBCHAPTER B—STATEMENTS OF GENERAL POLICY OR INTERPRETATION NOT DIRECTLY RELATED TO REGULATIONS › PART 778—OVERTIME COMPENSATION › Subpart C—Payments That May Be Excluded From the “Regular Rate”

29 C.F.R. § 778.217

Reimbursement for expenses

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(a) General rule. Where an employee incurs expenses on his employer's behalf or where he is required to expend sums 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 expense 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, cell phone plans, or equipment on behalf of his employer or in paying organization membership dues or credentialing exam fees where relevant to the employer's business.

(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. (1) 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.

(2) A reimbursement amount for an employee traveling on his or her employer's business is per se reasonable, and not disproportionately large, if it:

(i) Is the same or less than the maximum reimbursement payment or per diem allowance permitted for the same type of expense under 41 CFR subtitle F (the Federal Travel Regulation System) or IRS guidance issued under 26 CFR 1.274-5(g) or (j); and

(ii) Otherwise meets the requirements of this section.

(3) Paragraph (c)(2) of this section creates no inference that a reimbursement for an employee traveling on his or her employer's business exceeding the amount permitted under 41 CFR subtitle F (the Federal Travel Regulation System) or IRS guidance issued under 26 CFR 1.274-5(g) or (j) is unreasonable for purposes of this section.

(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 § 778.116. See also § 531.37(b) of this chapter.

[33 FR 986, Jan. 26, 1968, as amended at 84 FR 68772, Dec. 16, 2019]
Notes of Decisions
Cited in 56 cases (20 in the last 5 years), 1980–2026 · leading case: Sullivan v. PJ United, Inc.
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Sullivan v. PJ United, Inc. (2018) alnd · cites it 4× “) Defendants state that the Court erroneously applied Chevron deference in its interpretation of 29 C.F.R. § 778.217 , where the proper standard to be applied was the more limited Skidmore deference.”
Wang v. Chinese Daily News, Inc. (2006) cacd · cites it 3× “Further, 29 C.F.R. § 778.217 (d) states that reimbursements for expenses that are for the employee’s benefit are included in the employee’s regular rate.”
Yassine Baouch v. Werner Enterprises, Inc. (2018) ca8 · cites it 2× “For example, 29 C.F.R. § 778.217 (d) explains: 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.”
Picton v. Excel Group, Inc. (2001) txed · cites it 6× “” 29 C.F.R. § 778.217 (b). These illustrations include the amount expended by an employee in purchasing supplies, tools, and equipment, and the actual or reasonably approximate amount expended by an employee for purchasing or laundering uniforms, travel expenses, living expenses…”
Francisco Soler v. G. & U., Inc., and Secretary, United States Department of Labor (1987) ca2 · cites it 3× “3(d)(2) (an employer's expenses for tools of the trade, construction by and for the employer, and certain uniforms are not reasonable costs deductible from wages); 29 C.”
Sharp v. CGG Land (U.S.) Inc. (2016) ca10 · cites it 2× “” 29 C.F.R. § 778.217 (a) (2016). For instance, this exception includes the “reasonably approximate amount expended by an employee, who is traveling ‘over the road’ on his employer’s business, for .”
Mary P. Laffey v. Northwest Airlines, Inc., Air Line Pilots Association, Non-Aligned Party (1980) cadc · cites it 2× “29 C.F.R. § 778.217 (b)(3) (1979) (emphasis supplied).”
Gagnon v. United Technisource, Inc. (2010) ca5 “§ 207 (e)(2); see also 29 C.F.R. § 778.217 (b), the “ ‘regular rate’ of pay .”
Baouch v. Werner Enterprises, Inc. (2017) ned · cites it 11× “, and applicable Department of Labor (“DOL”) regulations, 29 C.F.R. § 778.217 . Plaintiffs contend that Werner falls short of the minimum wage requirements of the FLSA because Wer-ner improperly includes the Payments to participating drivers in its minimum wage calculations.”
Lynch v. City of N.Y. (2018) ilsd “The question in that case hinged, however, upon whether the meal payments were for the convenience of the employer or the employee, and whether the firefighters were considered "out of town" under 29 C.F.R. §§ 778.217 (a), (b)(3). The court concluded that since they were…”
Guan Ming Lin v. Benihana Nat'l Corp. (2010) nysd “29 C.F.R. § 778.217 (reimbursement for uniform costs not included in calculation of wage rate for purposes of minimum wage compliance); N.”
Verna Clarke v. Amn Services, LLC (2021) ca9 “See 29 C.F.R. § 778.217 (b)(3). But it is also notable that AMN’s prorating policy does not change depending on the clinician’s reason for missing a shift.”
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— 29 C.F.R. § 778.217(a) — 1 case
Egan v. Fastaff, LLC (2025) cod
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