Ill. Admin. Code tit. 56 § 2732.227
EXAMPLE 1: An individual's compensation consists of $.05 for each newspaper that he delivers and a base fee of $50.00 per week. The individual's weekly mileage expense is approximately $25.00 and his other expenses total approximately $10.00. The base fee is a reasonable reimbursement for mileage and other expenses. Therefore, since the base fee is not considered regardless of the number of newspapers delivered, 100%, therefore, "substantially all" of the individual's remuneration is directly related to output.
EXAMPLE 2: An individual's compensation consists of $.05 for each newspaper that he delivers and a flat fee of $100.00 per week. The individual's weekly mileage expense is approximately $20.00 and his other expenses total approximately $7.00. The fee is not a reasonable reimbursement for mileage and other expenses. The difference between the fee and the actual expenses is included in determining whether the "substantially all the remuneration" requirement is met. The individual's output based remuneration would have to be at least 75% of the individual's total pay for the exemption to apply.
EXAMPLE 1: Delivery of a single newspaper to a restaurant owner who allows his customers to read the paper is delivery to the ultimate consumer.
EXAMPLE 2: Delivery of several copies of a newspaper to a restaurant which provides a complimentary morning newspaper for its customers is not delivery to the ultimate consumer.
EXAMPLE: Newspaper A contracts with an individual to deliver its newspapers in a specified area. This individual hires several adult motor route carriers to actually deliver the newspaper. Section 225(C) of the Act applies to both the individual and the adult motor route carriers because they are delivering newspapers to the ultimate consumer.
EXAMPLE 1: An individual has a large newspaper distribution route. On this route, 40% of his deliveries are to homes or apartments. The remaining 60% are delivered to stores, restaurants, newsstands and other retail establishments for retail sale. Section 225(C) of the Act does not apply to this individual.
EXAMPLE 2: An individual delivers newspapers to 20 single family homes and to one drugstore. Each home receives one newspaper while 50 newspapers are delivered to the drugstore for resale. Because the number of establishments, not the number of newspapers, determines the majority of deliveries, the individual makes the majority of his deliveries to the ultimate consumer.
Ill. Admin. Code tit. 56, § 2732.227
Added at 17 Ill. Reg. 8809, effective June 2, 1993