[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: 29CFR778.210]

[Page 374]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 778_OVERTIME COMPENSATION--Table of Contents
 
    Subpart C_Payments That May Be Excluded From the ``Regular Rate''
 
Sec. 778.210  Percentage of total earnings as bonus.

    In some instances the contract or plan for the payment of a bonus 
may also provide for the simultaneous payment of overtime compensation 
due on the bonus. For example, a contract made prior to the performance 
of services may provide for the payment of additional compensation in 
the way of a bonus at the rate of 10 percent of the employee's straight-
time earnings, and 10 percent of his overtime earnings. In such 
instances, of course, payments according to the contract will satisfy in 
full the overtime provisions of the Act and no recomputation will be 
required. This is not true, however, where this form of payment is used 
as a device to evade the overtime requirements of the Act rather than to 
provide actual overtime compensation, as described in Sec. Sec. 778.502 
and 778.503.