Wage and Hour Division, Labor § 778.108

Wage and Hour Division, Labor § 778.108 and employees paid on a commission discussed in § 778.303. For a discussion basis. It is therefore necessary to de- of overtime payments due because of termine the hours worked and the com- increases by way of bonuses, see pensation earned by pieceworkers and § 778.209. commission employees on a weekly basis. PRINCIPLES FOR COMPUTING OVERTIME PAY BASED ON THE ‘‘REGULAR RATE’’ § 778.105 Determining the workweek. § 778.107 General standard for over- An employee’s workweek is a fixed time pay. and regularly recurring period of 168 hours—seven consecutive 24-hour peri- The general overtime pay standard in ods. It need not coincide with the cal- section 7(a) requires that overtime endar week but may begin on any day must be compensated at a rate not less and at any hour of the day. For pur- than one and one-half times the reg- poses of computing pay due under the ular rate at which the employee is ac- Fair Labor Standards Act, a single tually employed. The regular rate of workweek may be established for a pay at which the employee is employed plant or other establishment as a may in no event be less than the statu- whole or different workweeks may be tory minimum. (The statutory min- established for different employees or imum is the specified minimum wage groups of employees. Once the begin- applicable under section 6 of the Act, ning time of an employee’s workweek except in the case of workers specially is established, it remains fixed regard- provided for in section 14 and workers less of the schedule of hours worked by in Puerto Rico, the Virgin Islands, and him. The beginning of the workweek American Samoa who are covered by may be changed if the change is in- wage orders issued pursuant to section tended to be permanent and is not de- 8 of the Act.) If the employee’s regular signed to evade the overtime require- rate of pay is higher than the statutory ments of the Act. The proper method of minimum, his overtime compensation computing overtime pay in a period in must be computed at a rate not less which a change in the time of com- than one and one-half times such high- mencement of the workweek is made, er rate. Under certain conditions pre- is discussed in §§ 778.301 and 778.302. scribed in section 7 (f), (g), and (j), the Act provides limited exceptions to the § 778.106 Time of payment. application of the general standard of section 7(a) for computing overtime There is no requirement in the Act pay based on the regular rate. With re- that overtime compensation be paid spect to these, see §§ 778.400 through weekly. The general rule is that over- 778.421 and 778.601 and part 548 of this time compensation earned in a par- chapter. The Act also provides, in sec- ticular workweek must be paid on the tion 7(b), (i), (k) and (m) and in section regular pay day for the period in which 13, certain partial and total exemptions such workweek ends. When the correct from the application of section 7(a) to amount of overtime compensation can- certain employees and under certain not be determined until some time conditions. Regulations and interpreta- after the regular pay period, however, tions concerning these exemptions are the requirements of the Act will be sat- outside the scope of this part 778 and isfied if the employer pays the excess reference should be made to other ap- overtime compensation as soon after plicable parts of this chapter. the regular pay period as is prac- ticable. Payment may not be delayed [46 FR 7309, Jan. 23, 1981] for a period longer than is reasonably necessary for the employer to compute § 778.108 The ‘‘regular rate’’. and arrange for payment of the amount The ‘‘regular rate’’ of pay under the due and in no event may payment be Act cannot be left to a declaration by delayed beyond the next payday after the parties as to what is to be treated such computation can be made. Where as the regular rate for an employee; it retroactive wage increases are made, must be drawn from what happens retroactive overtime compensation is under the employment contract (Bay due at the time the increase is paid, as Ridge Operating Co. v. Aaron, 334 U.S. 411 VerDate Mar<15>2010 19:30 Aug 20, 2012 Jkt 226113 PO 00000 Frm 00421 Fmt 8010 Sfmt 8010 Q:\29\29V3.TXT ofr150 PsN: PC150.

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