How does 29 CFR 778.217 treat expense reimbursements?

Only the actual or reasonably approximate amount of expenses incurred on the employer's behalf (or for the employer's convenience) is excluded from the regular rate under § 207(e)(2). If the reimbursement is disproportionately large, the excess is included in the regular rate (778.217(c)(1); DOL Opinion Letter FLSA2024-01). Personal expenses such as home-to-work commute, lunch, or rent are never excludable (778.217(d)).

Same as 778.310 lump for overtime?

No. 778.310 includes a varying overtime lump in the regular rate because it is attributed to overtime hours without regard to how many. 778.217 is about expense reimbursements under § 207(e)(2). Classic excess $75 can produce the same $1,182.50 total as a $75 778.310 lump, but the statutory path and inputs differ.

What about DOL Opinion Letter FLSA2024-01?

WHD confirmed that only the portion of a tool/equipment payment that reasonably approximates expenses actually incurred may be excluded; six-to-eight-times-larger daily tool stipends must put the excess in the regular rate. This page models that excess-inclusion rule.

FLSA Expense Reimbursement Regular Rate

Q: Classic $20 × five 10-hour days + $100 remib / $25 actual?

Hourly wages $1,000. Exclude $25; include excess $75 in RR → RR $21.50. Extra half-time after 40 = $107.50. Total wages $1,182.50 versus /overtime/ $1,100 (no remib), proper full exclusion $1,100, personal all-in $1,210, and /flsa-778-310-lump/ at a $75 lump $1,182.50 (same dollars, different statute).

Q: Are commute reimbursements excludable?

No. Section 778.217(d) says expenses normally incurred by the employee for his own benefit — traveling to and from work, buying lunch, paying rent — are not excludable reimbursements. The entire payment stays in the regular rate.

FLSA expense reimbursement & regular rate

29 CFR § 778.217 / 29 U.S.C. § 207(e)(2): only the actual or reasonably approximate amount of expenses incurred on the employer’s behalf is excluded from the regular rate. Excess over that amount stays in the regular rate; personal commute/lunch/rent reimbursements are never excluded. Hours worked still earn extra half-time after 40. Classic $20 × five 10h + $100 remib / $25 actual → $1,182.50 vs /overtime/ $1,100 vs proper exclude $1,100 vs personal $1,210 vs /flsa-778-310-lump/ $75 $1,182.50.

How 778.217 pays

§ 778.217(a)–(b) excludes payments that reasonably approximate expenses the employee incurs on the employer’s behalf (tools, uniforms, over-the-road travel, temporary excess home-to-work after a plant move, supper money when held over). § 778.217(c)(1) is blunt: only the approximate amount is excludable; a disproportionately large “reimbursement” puts the excess in the regular rate. DOL Opinion Letter FLSA2024-01 (8 Nov 2024) applies that rule to oversized tool/equipment stipends.

Classic $20 × five 10-hour days + $100 remib / $25 actual. Hourly wages $1,000. Exclude $25; include excess $75 → RR $21.50. Extra half-time after 40 = $107.50. Total wages $1,182.50 versus /overtime/ $1,100, proper full exclusion $1,100 (excluded remib is not wages), personal all-in $1,210, and a $75 778.310 lump $1,182.50 (same dollars, different statute — that lump is OT-attributed pay, not an expense).

Personal expenses. § 778.217(d): reimbursing normal commute, lunch, or rent does not create an exclusion — the whole payment stays in the regular rate. Toggle “Personal expense” to model that path.

$20 · five 10h · $100 remib / $25 actual → $1,182.50.
$20 · five 10h · $100 remib ≈ $100 actual → $1,100 wages (+ $100 remib off ticket).
$20 · five 10h · $100 personal commute → $1,210.
$20 · five 10h · $0 remib → $1,100.
$20 · five 8h · $100 / $25 → $875 (no OT half).
Same punches on /flsa-778-310-lump/ with lump $75 → $1,182.50.

Sources

29 CFR § 778.217 — Cornell LII (HTTP 200)
29 CFR § 778.217 — eCFR (HTTP 200)
29 CFR § 778.217 — GovRegs reprint (HTTP 200)
29 U.S.C. § 207 — § 207(e)(2) exclusion (Cornell LII, HTTP 200)
DOL WHD Opinion Letter FLSA2024-01 — excess tool/equipment reimbursements (HTTP 200)

FAQ

How does the excess rule pay?

Exclude min(remib, approximate expense). Include the rest in RR. Extra half-time after 40 at that RR. Classic $20 × five 10h + $100 / $25 → $1,182.50.

Same as /flsa-778-310-lump/?

No. Same classic dollars are possible when the excess equals a 778.310 lump, but 778.217 is an expense-reimbursement exclusion under § 207(e)(2), not an overtime-attributed lump.

Same as /flsa-778-219-unused-leave/?

No. 778.219 excludes forgone holiday / unused leave payouts from RR. 778.217 is about expense reimbursements.

Are commute reimbursements excludable?

No. § 778.217(d) keeps personal commute/lunch/rent payments in the regular rate.

What does FLSA2024-01 add?

WHD: only the portion of a tool stipend that reasonably approximates incurred expenses may be excluded; oversized stipends put the excess in RR. This calculator’s excess track models that.