[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: 29CFR548.405]

[Page 217]
 
                             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 B_Interpretations
 
Sec. 548.405  Representative period.

    (a) The application must set forth the facts relied upon to show 
that the established basic rate is substantially equivalent to the 
average hourly earnings of the employee exclusive of overtime premiums 
over a representative period of time. \21\ The basic rate will be 
considered ``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 approximately equal to the employee's 
total overtime earnings computed on his average hourly earnings for each 
workweek in accordance with section 7(a) of the Act. \22\
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    \21\ See Sec. Sec. 778.200 through 778.207 of this chapter for 
further discussion of overtime premiums which may be excluded from the 
regular rate of pay.
    \22\ See Sec. Sec. 778.208 through 778.225 of this chapter for 
further discussion of the exclusion of vacation pay, holiday pay, 
discretionary bonuses and other payments from the average hourly 
earnings which comprise the employee's regular rate of pay.
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    (b) The length of time constituting a representative period will 
depend on the factors that cause the employee's average hourly earnings 
to vary appreciably from week to week. For instance, if the variation in 
earnings of an employee paid on an incentive basis is due to the 
difference in availability of work in the slow and busy seasons the 
period used for comparison of overtime earnings would have to include 
both a slow and a busy season in order to be representative. Likewise, 
if a piece-worker's average hourly earnings vary appreciably from week 
to week because of differences in materials or styles worked on, the 
period used for purposes of comparison would have to include work on the 
different materials and styles in order to be representative.

[20 FR 5683, Aug. 6, 1955]

                       Computation of Overtime Pay