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Code of Federal Regulations Pertaining to U.S. Department of Labor |
| Labor |
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| Wage and Hour Division, Department of Labor |
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| Interpretative Bulletin on the General Coverage of the Wage and Hours Provisions of the Fair Labor Standards Act of 1938 |
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| General |
29 CFR 776.5 - Coverage not dependent on method of compensation.
- Section Number: 776.5
- Section Name: Coverage not dependent on method of compensation.
The Act's individual employee coverage is not limited to employees
working on an hourly wage. The requirements of section 6 as to minimum
wages are that ``each'' employee described therein shall be paid wages
at a rate not less than a specified rate ``an hour''. 15
This does not mean that employees cannot be paid on a piecework basis or
on a salary, commission, or other basis; it merely means that whatever
the basis on which the workers are paid, whether it be monthly, weekly,
or on a piecework basis, they must receive at least the equivalent of
the minimum hourly rate. ``Each'' and ``any'' employee obviously and
necessarily includes one compensated by a unit of time, by the piece, or
by any other measurement. 16 Regulations prescribed by the
Administrator (part 516 of this chapter) provide for the keeping of
records in such form as to enable compensation on a piecework or other
basis to be translated into an hourly rate. 17
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15 Special exceptions are made for Puerto Rico, the Virgin
Islands, and American Samoa.
16 United States v. Rosenwasser, 323 U.S. 360.
17 For methods of translating other forms of compensation
into an hourly rate for purposes of sections 6 and 7, see parts 531 and
778 of this chapter.
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[35 FR 5543, Apr. 3, 1970]
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