(a) Section 7(a) of the Act requires the payment of overtime
compensation for hours worked in excess of the applicable maximum hours
standard at a rate not less than one and one-half times the regular
rate. The overtime rate, like the regular rate, is a rate per hour.
Where employees are paid on some basis other than an hourly rate, the
regular hourly rate is derived, as previously explained, by dividing the
total compensation (except statutory exclusions) by the total hours of
work for which the payment is made. To qualify as an overtime premium
under section 7(e)(5), (6), or (7), the extra compensation for overtime
hours must be paid pursuant to a premium rate which is likewise a rate
per hour (subject to certain statutory exceptions discussed in
Secs. 778.400 through 778.421).
(b) To qualify under section 7(e)(5), the overtime rate must be
greater than the regular rate, either a fixed amount per hour or a
multiple of the nonovertime rate, such as one and one-third, one and
one-half or two times that rate. To qualify under section 7(e) (6) or
(7), the overtime rate may not be less than one and one-half times the
bonafide rate established in good faith for like work performed during
nonovertime hours. Thus, it may not be less than time and one-half but
it may be more. It may be a standard multiple greater than one and one-
half (for example, double time); or it may be a fixed sum of money per
hour which is, as an arithmetical fact, at least one and one-half times
the nonovertime rate for example, if the nonovertime rate is $5 per
hour, the overtime rate may not be less than $7.50 but may be set at a
higher arbitrary figure such as $8 per hour.
[33 FR 986, Jan. 26, 1968, as amended at 46 FR 7314, Jan. 23, 1981]
