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CFR  

Code of Federal Regulations Pertaining to U.S. Department of Labor

Title 29  

Labor

 

Chapter V  

Wage and Hour Division, Department of Labor

 

 

Part 778  

Overtime Compensation

 

 

 

Subpart B  

The Overtime Pay Requirements

29 CFR 778.109 - The regular rate is an hourly rate.

  • Section Number: 778.109
  • Section Name: The regular rate is an hourly rate. 
    The ``regular rate'' under the Act is a rate per hour. The Act does 
not require employers to compensate employees on an hourly rate basis; 
their earnings may be determined on a piece-rate, salary, commission, or 
other basis, but in such case the overtime compensation due to employees 
must be computed on the basis of the hourly rate derived therefrom and, 
therefore, it is necessary to compute the regular hourly rate of such 
employees during each workweek, with certain statutory exceptions 
discussed in Secs. 778.400 through 778.421. The regular hourly rate of 
pay of an employee is determined by dividing his 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. The following sections give some examples of the 
proper method of determining the regular rate of pay in particular 
instances: (The maximum hours standard used in these examples is 40 
hours in a workweek).
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