[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: 29CFR776.5]

[Page 367]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 776_INTERPRETATIVE BULLETIN ON THE GENERAL COVERAGE OF THE WAGE AND 
HOURS PROVISIONS OF THE FAIR LABOR STANDARDS ACT OF 1938--Table of Contents
 
                            Subpart A_General
 
Sec. 776.5  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.

[35 FR 5543, Apr. 3, 1970]