[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: 29CFR778.117]

[Page 411]
 
                             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. 778.117  Commission payments--general.

    Commissions (whether based on a percentage of total sales or of 
sales in excess of a specified amount, or on some other formula) are 
payments for hours worked and must be included in the regular rate. This 
is true regardless of whether the commission is the sole source of the 
employee's compensation or is paid in addition to a guaranteed salary or 
hourly rate, or on some other basis, and regardless of the method, 
frequency, or regularity of computing, allocating and paying the 
commission. It does not matter whether the commission earnings are 
computed daily, weekly, biweekly, semimonthly, monthly, or at some other 
interval. The fact that the commission is paid on a basis other than 
weekly, and that payment is delayed for a time past the employee's 
normal pay day or pay period, does not excuse the employer from 
including this payment in the employee's regular rate.

[36 FR 4981, Mar. 16, 1971]