(2) 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. 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:
(i) The
actual amount expended by an employee in purchasing supplies, tools, materials,
or equipment on behalf of his employer.
(ii) 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.
(iii) 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.
(iv) "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.
(v) The actual or reasonably approximate
amount expended by an employee as temporary excess home-to-work travel expenses
incurred.
(A) 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
(B) because the employee, on a particular
occasion, is required to report for work at a place other than his regular
workplace.
(vi) 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.
(vii) 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.