[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR548.2]

[Page 251]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 548_AUTHORIZATION OF ESTABLISHED BASIC RATES FOR COMPUTING OVERTIME 
PAY--Table of Contents
 
                      Subpart A_General Regulations
 
Sec. 548.2  General conditions.

    The requirements of section 7 of the Act with respect to the payment 
of overtime compensation to an employee for a workweek longer than the 
applicable number of hours established in section 7(a) of the Act, will 
be met under the provisions of section 7(g)(3) of the Act by payments 
which satisfy all the following standards:
    (a) Overtime compensation computed in accordance with this part and 
section 7(g)(3) of the Act is paid pursuant to an agreement or 
understanding arrived at between the employer and the employee or as a 
result of collective bargaining before performance of the work;
    (b) A rate is established by such agreement or understanding as the 
basic rate to be used in computing overtime compensation thereunder;
    (c) The established basic rate is a specified rate or a rate which 
can be derived from the application of a specified method of 
calculation;
    (d) The established basic rate is a bona fide rate and is not less 
than the minimum hourly rate required by applicable law;
    (e) The basic rate so established is authorized by Sec. 548.3 or is 
authorized by the Administrator under Sec. 548.4 as being substantially 
equivalent to the average hourly earnings of the employee, exclusive of 
overtime premiums, in the particular work over a representative period 
of time;
    (f) Overtime hours are compensated at a rate of not less than one 
and one-half times such established basic rate;
    (g) The hours for which the employee is paid not less than one and 
one-half times such established basic rate qualify as overtime hours 
under section 7(e) (5), (6), or (7) of the Act;
    (h) The number of hours for which the employee is paid not less than 
one and one-half times such established basic rate equals or exceeds the 
number of hours worked by him in any workweek in excess of the maximum 
workweek applicable to such employees under subsection 7(a) of the Act;
    (i) The employee's average hourly earnings for the workweek 
exclusive of payments described in paragraphs (1) through (7) of section 
7(e) of the Act are not less than the minimum hourly rate required by 
this Act or other applicable law;
    (j) Extra overtime compensation is properly computed and paid on 
other forms of additional pay which have not been considered in arriving 
at the basic rate but which are required to be included in computing the 
regular rate.

[20 FR 5679, Aug. 6, 1955, as amended at 26 FR 7731, Aug. 18, 1961]