(a) Certain premium payments made by employers for work in excess of
or outside of specified daily or weekly standard work periods or on
certain special days are regarded as overtime premiums. In such case,
the extra compensation provided by the premium rates need not be
included in the employee's regular rate of pay for the purpose of
computing overtime compensation due under section 7(a) of the Act.
Moreover, under section 7(h) this extra compensation may be credited
toward the overtime payments required by the Act.
(b) The three types of extra premium payments which may thus be
treated as overtime premiums for purposes of the Act are outlined in
section 7(e) (5), (6), and (7) of the Act as set forth in
Sec. 778.200(a). These are discussed in detail in the sections
following.
(c) Section 7(h) of the Act specifically states that the extra
compensation provided by these three types of payments may be credited
toward overtime compensation due under section 7(a) for work in excess
of the applicable maximum hours standard. No other types of remuneration
for employment may be so credited.
