[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: 29CFR778.109]

[Page 363]
 
                             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. 778.109  The regular rate is an hourly rate.

    The ``regular rate'' under the Act is a rate per hour. The Act does 
not require employers to compensate employees on an hourly rate basis; 
their earnings may be determined on a piece-rate, salary, commission, or 
other basis, but in such case the overtime compensation due to employees 
must be computed on the basis of the hourly rate derived therefrom and, 
therefore, it is necessary to compute the regular hourly rate of such 
employees during each workweek, with certain statutory exceptions 
discussed in Sec. Sec. 778.400 through 778.421. The regular hourly rate 
of pay of an employee is determined by dividing his total remuneration 
for employment (except statutory exclusions) in any workweek by the 
total number of hours actually worked by him in that workweek for which 
such compensation was paid. The following sections give some examples of 
the proper method of determining the regular rate of pay in particular 
instances: (The maximum hours standard used in these examples is 40 
hours in a workweek).