Where a prize is awarded for the quality, quantity or efficiency of
work done by the employee during his customary working hours at his
normal assigned tasks (whether on the employer's premises or elsewhere)
it is obviously paid as additional remuneration for employment. Thus
prizes paid for cooperation, courtesy, efficiency, highest production,
best attendance, best quality of work, greatest number of overtime hours
worked, etc., are part of the regular rate of pay. If the prize is paid
in cash, the amount paid must be allocated (for the method of allocation
see Sec. 778.209) over the period during which it was earned to
determine the resultant increase in the average hourly rate for each
week of the period. If the prize is merchandise, the cost to the
employer is the sum which must be allocated. Where the prize is either
cash or merchandise, with the choice left the employee, the amount to be
allocated is the amount (or the cost) of the actual prize he accepts.
