[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: 29CFR778.206]

[Page 417-418]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 778_OVERTIME COMPENSATION--Table of Contents
 
    Subpart C_Payments That May Be Excluded From the ``Regular Rate''
 
Sec. 778.206  Premiums for work outside basic workday or workweek--examples.

    The effect of section 7(e)(7) where ``clock pattern'' premiums are 
paid may be illustrated by reference to provisions typical of the 
applicable collective bargaining agreements traditionally in effect 
between employers and employees in the longshore and stevedoring 
industries. These agreements specify straight time rates applicable 
during the hours established in good faith under the agreement as the 
basic, normal, or regular workday and workweek. Under one such 
agreement, for example, such workday and workweek are established as the 
first 6 hours of work, exclusive of mealtime, each day, Monday through 
Friday, between the hours of 8 a.m. and 5 p.m. Under another typical 
agreement, such workday and workweek are established as the hours 
between 8 a.m. and 12 noon and between 1 p.m. and 5 p.m., Monday through 
Friday. Work outside such workday and workweek is paid for at premium 
rates not less than one and one-half times the bona fide straight-time 
rates applicable to like work when performed during the basic, normal, 
or regular workday or workweek. The extra compensation provided by such 
premium rates will be excluded in computing the regular rate at which 
the employees so paid are employed and may be credited toward overtime 
compensation due under the Act. For example, if an employee is paid $5 
an hour under such an agreement for handling general cargo during the 
basic, normal, or regular workday and $7.50 per hour for like work 
outside of such workday, the extra $2.50 will be excluded from the 
regular rate and may be credited to overtime pay due under

[[Page 418]]

the Act. Similarly, if the straight time rate established in good faith 
by the contract should be higher because of handling dangerous or 
obnoxious cargo, recognition of skill differentials, or similar reasons, 
so as to be $7.50 an hour during the hours established as the basic or 
normal or regular workday or workweek, and a premium rate of $11.25 an 
hour is paid for the same work performed during other hours of the day 
or week, the extra $3.75 may be excluded from the regular rate of pay 
and may be credited toward overtime pay due under the Act. Similar 
principles are applicable where agreements following this general 
pattern exist in other industries.

[46 FR 7311, Jan. 23, 1981]