A similar situation is presented where employees have been hired at
an hourly rate of pay and have customarily worked a fixed workweek. If
the workweek is reduced from 40 to 35 hours without reduction in total
pay, the average hourly rate is thereby increased as in Sec. 778.322. If
the reduction in work schedule is accompanied by a new agreement
altering the mode of compensation from an hourly rate basis to a fixed
salary for a variable workweek up to 40 hours, the results described in
Sec. 778.323 follow.
