CFR > Title 29 - Labor > SUBTITLE B—Regulations Relating to Labor > CHAPTER V—WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR (parts 500 to 871) > SUBCHAPTER A—REGULATIONS (parts 500 to 697) > PART 551—LOCAL DELIVERY DRIVERS AND HELPERS; WAGE PAYMENT PLANS > 551.1—Statutory provision.

551.1—Statutory provision.

The following provision for exemption from the overtime pay provision is contained in section 13(b) of the Fair Labor Standards Act of 1938, as amended (29 U.S.C. 213(b) ):
(b) The provisions of section 7 shall not apply with respect to:
(11) any employee employed as a driver or driver's helper making local deliveries, who is compensated for such employment on the basis of trip rates, or other delivery payment plan, if the Secretary shall find that such plan has the general purpose and effect of reducing hours worked by such employees to, or below, the maximum workweek applicable to them under section 7(a).

Code of Federal Regulations

Under this provision, an employee employed and compensated as described in the quoted paragraph (11) may be employed without payment of overtime compensation for a workweek longer than the maximum workweek applicable to him under section 7(a) of the Act, but only if it is established by a finding of the Secretary that the employee is compensated for his employment as a driver or driver's helper making local deliveries on the basis of trip rates or other delivery payment plan that has the general purpose and effect stated in section 13(b)(11). Such a finding is prescribed by the statute as one of the “explicit prerequisites to exemption”. (See Arnold v. Kanowsky, 361 U.S. 388, 392.)