[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR548.4]

[Page 206]
 
                             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 A_General Regulations
 
Sec. 548.4  Application for authorization of a ``basic rate.''

    (a) Application may be made by any employer or group of employers, 
for authorization of a basic rate or rates, other than those approved 
under Sec. 548.3. Application must be made jointly with any collective 
bargaining representative of employees covered by the application. 
Application must be made to the Administrator of the Wage and Hour 
Division, U.S. Department of Labor, Washington, DC 20210.
    (b) Each application shall contain the following:
    (1) A statement of the agreement or understanding arrived at between 
the employer and employee, including the proposed effective date, the 
term of the agreement or understanding, and a statement of the 
applicable overtime provisions, and
    (2) A description of the basic rate of the method or formula to be 
used in computing the basic rate for the type of work or position to 
which it will be applicable, and
    (3) A statement of the kinds of jobs or employees covered by the 
agreement, and
    (4) The facts and reasons relied upon to show that the basic rate so 
established is substantially equivalent to the average hourly earnings 
of the employee, exclusive of overtime premiums, in the particular work 
over a representative period of time. For such showing, a basic rate 
shall be deemed ``substantially equivalent'' to the average hourly 
earnings of the employee if, during a representative period, the 
employee's total overtime earnings calculated at the basic rate in 
accordance with the applicable overtime provisions are substantially 
equivalent to the amount of such earnings when computed in accordance 
with section 7(a) of the Act on the basis of the employee's average 
hourly earnings for each workweek, and
    (5) Such additional information as the Administrator may require.
    (c) The Administrator shall require that notice of the application 
be given to affected employees in such manner as he deems appropriate. 
The Administrator shall notify the applicants in writing of his decision 
as to each application.
    (d) In authorizing a basic rate pursuant to this part, the 
Administrator shall include such conditions as are necessary to insure 
that the basic rate will be used only so long as it is substantially 
equivalent to the average hourly earnings of the employee, exclusive of 
overtime premiums, in the particular work over a representative period 
of time, and such other conditions as are necessary or appropriate to 
insure compliance with the provisions of the Act.
    (e) The Administrator may at any time, upon his own motion or upon 
written request of any interested party setting forth reasonable grounds 
therefor, and after a hearing or other opportunity to interested persons 
to present their views, amend or revoke any authorization granted under 
this part.

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