The Act does not provide for compensation of covered employees at
premium rates for overtime hours of work. Section 6 recognizes, however,
that other Federal laws may require such compensation to be paid to
employees working on or in connection with contracts subject to the Act
(see Sec. 4.181) and prescribes, for purposes of such laws, the manner
in which fringe benefits furnished pursuant to the Act shall be treated
in computing such overtime compensation as follows: ``In determining any
overtime pay to which such service employees are entitled under any
Federal law, the regular or basic hourly rate of such an employee shall
not include any fringe benefit payments computed hereunder which are
excluded from the regular rate under the Fair Labor Standards Act by
provisions of section 7(d) [now section 7(e)] thereof.'' Fringe benefit
payments which qualify for such exclusion are described in part 778,
subpart C of this title. The interpretations there set forth will be
applied in determining the overtime pay to which covered service
employees are entitled under other Federal statutes. The effect of
section 6 of the Act in situations where equivalent fringe benefits or
cash payments are provided in lieu of the specified fringe benefits is
stated in Sec. 4.177(e) of this part, and illustrated in Sec. 4.182.
