The following general requirements must be met in every case before
the overtime computation authorized under section 7(g)(1) or (2) may be
utilized.
(a) First, in order to insure that the method of computing overtime
pay permitted in this section will not in any circumstances be seized
upon as a device for avoiding payment of the minimum wage due for each
hour, the requirement must be met that employee's average hourly
earnings for the workweek (exclusive of overtime pay and of all other
pay which is excluded from the regular rate) are not less than the
minimum. This requirement insures that the employer cannot pay
subminimum nonovertime rates with a view to offsetting part of the
compensation earned during the overtime hours against the minimum wage
due for the workweek.
(b) Second, in order to insure that the method of computing overtime
pay permitted in this section will not be used to circumvent or avoid
the payment of proper overtime compensation due on other sums paid to
employees, such as bonuses which are part of the regular rate, the
section requires that extra overtime compensation must be properly
computed and paid on other forms of additional pay required to be
included in computing the regular rate.
