The guaranty of pay must be ``based on the rate so specified,'' in
the contract. If the contract specifies a regular rate of $5 and an
overtime rate of $7.50 and guarantees pay for 50 hours and the maximum
hours standard is 40 hours, the amount of the guaranty must be $275, if
it is to be based on the rates so specified. A guaranty of $290 in such
a situation would not, obviously, be based on the rates specified in the
contract. Moreover, a contract which provides a variety of different
rates for shift differentials, arduous or hazardous work, stand-by time,
piece-rate incentive bonuses, commissions or the like in addition to a
specified regular rate and a specified overtime rate with a guaranty of
pay of, say, $290 from all sources would not qualify under this section,
since the guaranty of pay in such a case is not based on the regular and
overtime rates specified in the contract.
[46 FR 7318, Jan. 23, 1981]
