[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: 29CFR778.119]

[Page 366]
 
                             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. 778.119  Deferred commission payments--general rules.

    If the calculation and payment of the commission cannot be completed 
until sometime after the regular pay day for the workweek, the employer 
may disregard the commission in computing the regular hourly rate until 
the amount of commission can be ascertained. Until that is done he may 
pay compensation for overtime at a rate not less than one and one-half 
times the hourly rate paid the employee, exclusive of the commission. 
When the commission can be computed and paid, additional overtime 
compensation due by reason of the inclusion of the commission in the 
employee's regular rate must also be paid. To compute this additional 
overtime compensation, it is necessary, as a general rule, that the 
commission be apportioned back over the workweeks of the period during 
which it was earned. The employee must then receive additional overtime 
compensation for each week during the period in which he worked in 
excess of the applicable maximum hours standard. The additional 
compensation for that workweek must be not less than one-half of the 
increase in the hourly rate of pay attributable to the commission for 
that week multipled by the number of hours worked in excess of the 
applicable maximum hours standard in that workweek.