[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: 29CFR548.303]

[Page 257]
 
                             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 B_Interpretations
 
Sec. 548.303  Average earnings for each type of work.

    (a) Section 548.3(c) authorizes as an established basic rate: ``A 
rate per hour which is obtained by averaging the earnings, exclusive of 
payments described in paragraphs (1) through (7) of section 7(e) of the 
act, of the employee for each type of work performed during each 
workweek, or any other longer period not exceeding sixteen calendar 
days, for which such average is regularly computed under the agreement 
or understanding. Such a rate may be used to compute overtime 
compensation, during the particular period for which such average is 
computed, for all the overtime hours worked by the employee at the type 
of work for which the rate is obtained.''
    (b) Section 548.3(c) differs from Sec. 548.3(b) in this way: 
Section 548.3(b) provides for the computation of the basic rate on the 
average of all earnings during the specified period; Sec. 548.3(c) 
permits the basic rate to be computed on the basis of the earnings for 
each particular type of work. Thus, if the employee performs different 
types of work, each involving a different rate of pay such as different 
piece-rate, job rates, or a combination of these with hourly rates, a 
separate basic rate may be computed for each type of work and overtime 
computed on the basis of the rate or rates applicable to the type of 
work performed during the overtime hours.

    Example. An employee who is paid on a weekly basis with overtime 
after 40 hours works six 8-hour days in a workweek under an agreement or 
understanding reached pursuant to this subsection. He performs three 
different types of piecework, each at a different rate of pay. The basic 
rates to be used for computing overtime in this situation would be 
arrived at by dividing the earnings for each type of work by the number 
of hours during which that type of work was performed. There would thus 
be three different basic rates, one for each type of work. Since the 
overtime hours used in this illustration occur on the sixth day, the 
types of work performed on the sixth day would determine the basic rate 
or rates on which overtime would be computed that week. Thus, if the 
average hourly earnings for the three types of work are respectively 
$1.70 an hour in type A, $1.80 an hour in type B, and $2 an hour in type 
C, and on the sixth day the employee works on type B, his overtime 
premium for the sixth day would be one-half the basic rate of $1.80 an 
hour, multiplied by the 8 hours worked on that day.

(Sec. 1, 52 Stat. 1060, as amended, 29 U.S.C. 201, et seq.)

[20 FR 5681, Aug. 6, 1955, as amended at 32 FR 3293, Feb. 25, 1967]