Check out Leland Kwong's code.
Basic idea is to bind the wheeling event to the child element, and then use the native javascript property scrollHeight and the jquery property outerHeight of the child element to detect the end of the scroll, upon which return false to the wheeling event to prevent any scrolling.
var scrollableDist,curScrollPos,wheelEvent,dY;
$('#child-element').on('wheel', function(e){
scrollableDist = $(this)[0].scrollHeight - $(this).outerHeight();
curScrollPos = $(this).scrollTop();
wheelEvent = e.originalEvent;
dY = wheelEvent.deltaY;
if ((dY>0 && curScrollPos >= scrollableDist) ||
(dY<0 && curScrollPos <= 0)) {
return false;
}
});