[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: 29CFR778.0] [Page 356-358] TITLE 29--LABOR CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR PART 778_OVERTIME COMPENSATION--Table of Contents Subpart A_General Considerations Sec. 778.0 Introductory statement. Subpart A_General Considerations Sec. 778.0 Introductory statement. 778.1 Purpose of interpretative bulletin. 778.2 Coverage and exemptions not discussed. 778.3 Interpretations made, continued, and superseded by this part. 778.4 Reliance on interpretations. 778.5 Relation to other laws generally. 778.6 Effect of Davis-Bacon Act. 778.7 Effect of Service Contract Act of 1965. Subpart B_The Overtime Pay Requirements Introductory 778.100 The maximum-hours provisions. 778.101 Maximum nonovertime hours. 778.102 Application of overtime provisions generally. 778.103 The workweek as the basis for applying section 7(a). 778.104 Each workweek stands alone. 778.105 Determining the workweek. 778.106 Time of payment. Principles for Computing Overtime Pay Based on the ``Regular Rate'' 778.107 General standard for overtime pay. 778.108 The ``regular rate''. 778.109 The regular rate is an hourly rate. 778.110 Hourly rate employee. 778.111 Pieceworker. 778.112 Day rates and job rates. 778.113 Salaried employees--general. 778.114 Fixed salary for fluctuating hours. 778.115 Employees working at two or more rates. 778.116 Payments other than cash. 778.117 Commission payments--general. 778.118 Commission paid on a workweek basis. 778.119 Deferred commission payments--general rules. 778.120 Deferred commission payments not identifiable as earned in particular workweeks. 778.121 Commission payments--delayed credits and debits. 778.122 Computation of overtime for commission employees on established basic rate. Subpart C_Payments That May Be Excluded From the ``Regular Rate'' The Statutory Provisions 778.200 Provisions governing inclusion, exclusion, and crediting of particular payments. Extra Compensation Paid for Overtime 778.201 Overtime premiums--general. 778.202 Premium pay for hours in excess of a daily or weekly standard. 778.203 Premium pay for work on Saturdays, Sundays, and other ``special days''. 778.204 ``Clock pattern'' premium pay. 778.205 Premiums for weekend and holiday work--example. 778.206 Premiums for work outside basic workday or workweek--examples. 778.207 Other types of contract premium pay distinguished. Bonuses 778.208 Inclusion and exclusion of bonuses in computing the ``regular rate''. 778.209 Method of inclusion of bonus in regular rate. 778.210 Percentage of total earnings as bonus. 778.211 Discretionary bonuses. [[Page 357]] 778.212 Gifts, Christmas and special occasion bonuses. 778.213 Profit-sharing, thrift, and savings plans. 778.214 Benefit plans; including profit-sharing plans or trusts providing similar benefits. 778.215 Conditions for exclusion of benefit-plan contributions under section 7(e)(4). Payments Not for Hours Worked 778.216 The provisions of section 7(e)(2) of the Act. 778.217 Reimbursement for expenses. 778.218 Pay for certain idle hours. 778.219 Pay for foregoing holidays and vacations. 778.220 ``Show-up'' or ``reporting'' pay. 778.221 ``Call-back'' pay. 778.222 Other payments similar to ``call-back'' pay. 778.223 Pay for non-productive hours distinguished. 778.224 ``Other similar payments''. Talent Fees in the Radio and Television Industry 778.225 Talent fees excludable under regulations. Subpart D_Special Problems Introductory 778.300 Scope of subpart. Change in the Beginning of the Workweek 778.301 Overlapping when change of workweek is made. 778.302 Computation of overtime due for overlapping workweeks. Additional Pay for Past Period 778.303 Retroactive pay increases. How Deductions Affect the Regular Rate 778.304 Amounts deducted from cash wages--general. 778.305 Computation where particular types of deductions are made. 778.306 Salary reductions in short workweeks. 778.307 Disciplinary deductions. Lump Sum Attributed to Overtime 778.308 The overtime rate is an hourly rate. 778.309 Fixed sum for constant amount of overtime. 778.310 Fixed sum for varying amounts of overtime. 778.311 Flat rate for special job performed in overtime hours. ``Task'' Basis of Payment 778.312 Pay for task without regard to actual hours. 778.313 Computing overtime pay under the Act for employees compensated on task basis. 778.314 Special situations. Effect of Failure to Count or Pay for Certain Working Hours 778.315 Payment for all hours worked in overtime workweek is required. 778.316 Agreements or practices in conflict with statutory requirements are ineffective. 778.317 Agreements not to pay for certain nonovertime hours. 778.318 Productive and nonproductive hours of work. Effect of Paying for But Not Counting Certain Hours 778.319 Paying for but not counting hours worked. 778.320 Hours that would not be hours worked if not paid for. Reduction in Workweek Schedule With No Change in Pay 778.321 Decrease in hours without decrease in pay--general. 778.322 Reducing the fixed workweek for which a salary is paid. 778.323 Effect if salary is for variable workweek. 778.324 Effect on hourly rate employees. 778.325 Effect on salary covering more than 40 hours' pay. 778.326 Reduction of regular overtime workweek without reduction of take-home pay. 778.327 Temporary or sporadic reduction in schedule. 778.328 Plan for gradual permanent reduction in schedule. 778.329 Alternating workweeks of different fixed lengths. Prizes as Bonuses 778.330 Prizes or contest awards generally. 778.331 Awards for performance on the job. 778.332 Awards for activities not normally part of employee's job. 778.333 Suggestion system awards. Subpart E_Exceptions From the Regular Rate Principles Computing Overtime Pay on an ``Established'' Rate 778.400 The provisions of section 7(g)(3) of the Act. 778.401 Regulations issued under section 7(g)(3). [[Page 358]] Guaranteed Compensation Which Includes Overtime Pay 778.402 The statutory exception provided by section 7(f) of the Act. 778.403 Constant pay for varying workweeks including overtime is not permitted except as specified in section 7(f). 778.404 Purposes of exemption. 778.405 What types of employees are affected. 778.406 Nonovertime hours as well as overtime hours must be irregular if section 7(f) is to apply. 778.407 The nature of the section 7(f) contract. 778.408 The specified regular rate. 778.409 Provision for overtime pay. 778.410 The guaranty under section 7(f). 778.411 Sixty-hour limit on pay guaranteed by contract. 778.412 Relationship between amount guaranteed and range of hours employee may be expected to work. 778.413 Guaranty must be based on rates specified in contract. 778.414 ``Approval'' of contracts under section 7(f). Computing Overtime Pay on the Rate Applicable to the Type of Work Performed in Overtime Hours (Secs. 7(g)(1) and (2)) 778.415 The statutory provisions. 778.416 Purpose of provisions. 778.417 General requirements of section 7(g). 778.418 Pieceworkers. 778.419 Hourly workers employed at two or more jobs. 778.420 Combined hourly rates and piece rates. 778.421 Offset hour for hour. Subpart F_Pay Plans Which Circumvent the Act Devices to Evade the Overtime Requirements 778.500 Artificial regular rates. 778.501 The ``split-day'' plan. Pseudo-Bonuses 778.502 Artificially labeling part of the regular wages a ``bonus''. 778.503 Pseudo ``percentage bonuses''. Subpart G_Miscellaneous 778.600 Veterans' subsistence allowances. 778.601 Special overtime provisions available for hospital and residential care establishments under section 7(j). 778.602 Special overtime provisions under section 7(b). 778.603 Special overtime provisions for certain employees receiving remedial education under section 7(q). Authority: 52 Stat. 1060, as amended; 29 U.S.C. 201 et seq. Source: 33 FR 986, Jan. 26, 1968, unless otherwise noted. The Fair Labor Standards Act, as amended, hereinafter referred to as the Act, is a Federal statute of general application which establishes minimum wage, overtime pay, child labor, and equal pay requirements that apply as provided in the Act. All employees whose employment has the relationship to interstate or foreign commerce which the Act specifies are subject to the prescribed labor standards unless specifically exempted from them. Employers having such employees are required to comply with the Act's provisions in this regard unless relieved therefrom by some exemption in the Act. Such employers are also required to comply with specified recordkeeping requirements contained in part 516 of this chapter. The law authorizes the Department of Labor to investigate for compliance and, in the event of violations, to supervise the payment of unpaid wages or unpaid overtime compensation owing to any employee. The law also provides for enforcement in the courts.