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CFR  

Code of Federal Regulations Pertaining to ESA

Title 29  

Labor

 

Chapter V  

Wage and Hour Division, Department of Labor

 

 

Part 779  

The Fair Labor Standards Act As Applied to Retailers of Goods or Services

 

 

 

Subpart E  

Provisions Relating to Certain Employees of Retail or Service Establishments


29 CFR 779.418 - Grace period for computing portion of compensation representing commissions.

  • Section Number: 779.418
  • Section Name: Grace period for computing portion of compensation representing commissions.

    Where it is not practicably possible for the employer to compute the 
commission earnings of the employee for all workweeks ending in a prior 
representative period in time to determine the overtime pay obligations, 
if any, for the workweek or workweeks immediately following, 1 month of 
grace may be used by the retail or service establishment. This month of 
grace will not change the length of the current period in which the 
prior period is used as representative. It will merely allow an interval 
of 1 month between the end of the prior period and the beginning of the 
current period in order to permit necessary computations for the prior 
period to be made. For example, assume that the representative period 
used is the quarter-year immediately preceding the current quarter, and 
commissions for the prior period cannot be computed in time to determine 
the overtime pay obligations for the workweeks included in the first pay 
period in the current quarter. By applying a month of grace, the next 
earlier quarterly period may be used during the first month of the 
current quarter; and the quarter-year immediately preceding the current 
quarter will then be used for all workweeks ending in a quarter-year 
period which begins 1 month after the commencement of the current 
quarter. Thus, a January 1-March 31 representative period may be used 
for purposes of section 7(i) in a quarterly period beginning May 1 and 
ending July 31, allowing the month of April for necessary commission 
computations for the representative period. Once this method of 
computation is adopted it must be used for each successive period in 
like manner. The prior period used as representative must, of course, as 
in other cases, meet all the requirements of a representative period as 
previously explained.
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