(a) When overtime is worked by a tipped employee who is subject to
the overtime pay provisions of the Act, his regular rate of pay is
determined by dividing hs total remuneration for employment (except
statutory exclusions) in any workweek by the total number of hours
actually worked by him in that workweek for which such compensation was
paid. (See part 778 of this chapter for a detailed discussion of
overtime compensation under the Act.) In accordance with section 3(m), a
tipped employee's regular rate of pay includes the amount of tip credit
taken by the employer (not in excess of 50 percent of the applicable
minimum wage), the reasonable cost or fair value of any facilities
furnished him by the employer, as authorized under section 3(m) and this
part 531, and the cash wages including commissions and certain bonuses
paid by the employer. Any tips received by the employee in excess of the
tip credit need not be included in the regular rate. Such tips are not
payments made by the employer to the employee as remuneration for
employment within the meaning of the Act.
