(a) Section 548.3(c) authorizes as an established basic rate: ``A
rate per hour which is obtained by averaging the earnings, exclusive of
payments described in paragraphs (1) through (7) of section 7(e) of the
act, of the employee for each type of work performed during each
workweek, or any other longer period not exceeding sixteen calendar
days, for which such average is regularly computed under the agreement
or understanding. Such a rate may be used to compute overtime
compensation, during the particular period for which such average is
computed, for all the overtime hours worked by the employee at the type
of work for which the rate is obtained.''
(b) Section 548.3(c) differs from Sec. 548.3(b) in this way: Section
548.3(b) provides for the computation of the basic rate on the average
of all earnings during the specified period; Sec. 548.3(c) permits the
basic rate to be computed on the basis of the earnings for each
particular type of work. Thus, if the employee performs different types
of work, each involving a different rate of pay such as different piece-
rate, job rates, or a combination of these with hourly rates, a separate
basic rate may be computed for each type of work and overtime computed
on the basis of the rate or rates applicable to the type of work
performed during the overtime hours.
Example. An employee who is paid on a weekly basis with overtime
after 40 hours works six 8-hour days in a workweek under an agreement or
understanding reached pursuant to this subsection. He performs three
different types of piecework, each at a different rate of pay. The basic
rates to be used for computing overtime in this situation would be
arrived at by dividing the earnings for each type of work by the number
of hours during which that type of work was performed. There would thus
be three different basic rates, one for each type of work. Since the
overtime hours used in this illustration occur on the sixth day, the
types of work performed on the sixth day would determine the basic rate
or rates on which overtime would be computed that week. Thus, if the
average hourly earnings for the three types of work are respectively
$1.70 an hour in type A, $1.80 an hour in type B, and $2 an hour in type
C, and on the sixth day the employee works on type B, his overtime
premium for the sixth day would be one-half the basic rate of $1.80 an
hour, multiplied by the 8 hours worked on that day.
(Sec. 1, 52 Stat. 1060, as amended, 29 U.S.C. 201, et seq.)
[20 FR 5681, Aug. 6, 1955, as amended at 32 FR 3293, Feb. 25, 1967]
