The methods of computing overtime pay on the basic rates for piece
workers, hourly rated employees, and salaried employees are the same as
the methods of computing overtime pay at the regular rate.
Example 1. Under an employment agreement the basic rate to be used
in computing overtime compensation for a piece worker for hours of work
in excess of 8 in each day is the employee's average hourly earnings for
all work performed during that day.23 The employee is
entitled to one-half the basic rate for each daily overtime hour in
addition to the total piece work earnings for the day.
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23 See Sec. 548.302.
Example 2. An employee, who normally would come within the forty
hour provision of section 7(a) of the Act, has a basic rate which is his
monthly salary divided by the number of regular hours of work in the
month.24 If the salary is intended to cover straight-time
compensation for a forty hour week he would be entitled to overtime for
every hour after forty computed on the basis of one and one-half times
the established basic rate, in addition to his monthly salary. If the
salary is intended to cover a workweek shorter than forty hours, such as
thirty-five hours, he would be entitled to additional straight time at
the basic rate for the hours between thirty-five and forty and also to
overtime at one and one-half time that rate for all hours worked in
excess of forty in a week.
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24 See Sec. 548.301.
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[20 FR 5683, Aug. 6, 1955, as amended at 26 FR 7732, Aug. 18, 1961]
