(a) Earnings at hourly rate exclusively. If the employee is employed
solely on the basis of a single hourly rate, the hourly rate is his
``regular rate.'' For his overtime work he must be paid, in addition to
his straight time hourly earnings, a sum determined by multiplying one-
half the hourly rate by the number of hours worked in excess of 40 in
the week. Thus a $6 hourly rate will bring, for an employee who works 46
hours, a total weekly wage of $294 (46 hours at $6 plus 6 at $3). In
other words, the employee is entitled to be paid an amount equal to $6
an hour for 40 hours and $9 an hour for the 6 hours of overtime, or a
total of $294.
(b) Hourly rate and bonus. If the employee receives, in addition to
his earnings at the hourly rate, a production bonus of $9.20, the
regular hourly rate of pay is $6.20 an hour (46 hours at $6 yields $276;
the addition of the $9.20 bonus makes a total of $285.20; this total
divided by 46 hours yields a rate of $6.20). The employee is then
entitled to be paid a total wage of $303.80 for 46 hours (46 hours at
$6.20 plus 6 hours at $3.10, or 40 hours at $6.20 plus 6 hours at
$9.30).
[46 FR 7309, Jan. 23, 1981]
