[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: 29CFR778.111]

[Page 408-409]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 778_OVERTIME COMPENSATION--Table of Contents
 
                 Subpart B_The Overtime Pay Requirements
 
Sec. 778.111  Pieceworker.

    (a) Piece rates and supplements generally. When an employee is 
employed on a piece-rate basis, his regular hourly rate of pay is 
computed by adding together his total earnings for the workweek from 
piece rates and all other sources (such as production bonuses) and any 
sums paid for waiting time or other hours worked (except statutory 
exclusions): This sum is then divided by the number of hours worked in 
the week for which such compensation was paid, to yield the 
pieceworker's ``regular rate'' for that week. For his overtime work the 
piece-worker is entitled to be paid, in addition to his total weekly 
earnings at this regular rate for all hours worked, a sum equivalent to 
one-half this regular rate of pay multiplied by the number of hours 
worked in excess of 40 in the week. (For an alternative method of 
complying with the overtime requirements of the Act as far as 
pieceworkers are concerned, see Sec. 778.418.) Only additional half-
time pay is required in such cases where the employee has already 
received straight-time compensation at piece rates or by supplementary 
payments for all hours worked. Thus, if the employee has worked 50 hours 
and has earned $245.50 at piece rates for 46 hours of productive work 
and in addition has been compensated at $5.00 an hour for 4 hours of 
waiting time, his total compensation, $265.50 must be divided by his 
total hours of work, 50, to arrive at his regular hourly rate of pay--
$5.31. For the 10 hours of overtime the employee is entitled to 
additional compensation of $26.55 (10 hours at $2.655). For the week's 
work he is thus entitled to a total of $292.05 (which is

[[Page 409]]

equivalent to 40 hours at $5.31 plus 10 overtime hours at $7.965).
    (b) Piece rates with minimum hourly guarantee. In some cases an 
employee is hired on a piece-rate basis coupled with a minimum hourly 
guaranty. Where the total piece-rate earnings for the workweek fall 
short of the amount that would be earned for the total hours of work at 
the guaranteed rate, the employee is paid the difference. In such weeks 
the employee is in fact paid at an hourly rate and the minimum hourly 
guaranty which he was paid is his regular rate in that week. In the 
example just given, if the employee was guaranteed $5.50 an hour for 
productive working time, he would be paid $253 (46x$5.50) for the 46 
hours of productive work (instead of the $245.50 earned at piece rates). 
In a week in which no waiting time was involved, he would be owed an 
additional $2.75 (half time) for each of the 6 overtime hours worked, to 
bring his total compensation up to $269.50 (46 hours at $5.50 plus 6 
hours at $2.75 or 40 hours at $5.50 plus 6 hours at $8.25). If he is 
paid at a different rate for waiting time, his regular rate is the 
weighted average of the 2 hourly rates, as discussed in Sec. 778.115.

[46 FR 7309, Jan. 23, 1981]