(a) Weekly salary. If the employee is employed solely on a weekly
salary basis, his regular hourly rate of pay, on which time and a half
must be paid, is computed by dividing the salary by the number of hours
which the salary is intended to compensate. If an employee is hired at a
salary of $182.70 and if it is understood that this salary is
compensation for a regular workweek of 35 hours, the employee's regular
rate of pay is $182.70 divided by 35 hours, or $5.22 an hour, and when
he works overtime he is entitled to receive $5.22 for each of the first
40 hours and $7.83 (one and one-half times $5.22) for each hour
thereafter. If an employee is hired at a salary of $220.80 for a 40-hour
week his regular rate is $5.52 an hour.
(b) Salary for periods other than workweek. Where the salary covers
a period longer than a workweek, such as a month, it must be reduced to
its workweek equivalent. A monthly salary is subject to translation to
its equivalent weekly wage by multiplying by 12 (the number of months)
and dividing by 52 (the number of weeks). A semimonthly salary is
translated into its equivalent weekly wage by multiplying by 24 and
dividing by 52. Once the weekly wage is arrived at, the regular hourly
rate of pay will be calculated as indicated above. The regular rate of
an employee who is paid a regular monthly salary of $1,040, or a regular
semimonthly salary of $520 for 40 hours a week, is thus found to be $6
per hour. Under regulations of the Administrator, pursuant to the
authority given to him in section 7(g)(3) of the Act, the parties may
provide that the regular rates shall be determined by dividing the
monthly salary by the number of working days in the month and then by
the number of hours of the normal or regular workday. Of course, the
resultant rate in such a case must not be less than the statutory
minimum wage.
[46 FR 7310, Jan. 23, 1981]
