The amount of weekly pay guaranteed may not exceed compensation due
at the specified regular rate for the applicable maximum hours standard
and at the specified overtime rate for the additional hours, not to
exceed a total of 60 hours. Thus, if the maximum
hours standard is 40 hours and the specified regular rate is $5 an hour
the weekly guaranty cannot be greater than $350. This does not mean that
an employee employed pursuant to a guaranteed pay contract under this
section may not work more than 60 hours in any week; it means merely
that pay in an amount sufficient to compensate for a greater number of
hours cannot be covered by the guaranteeed pay. If he works in excess of
60 hours he must be paid, for each hour worked in excess of 60, overtime
compensation as provided in the contract, in addition to the guaranteed
amount.
[46 FR 7317, Jan. 23, 1981]
