(a) Under section 7(g)(1), an employee who is paid on the basis of a
piece rate for the work performed during nonovertime hours may agree
with his employer in advance of the performance of the work that he
shall be paid at a rate not less than one and one-half times this piece
rate for each piece produced during the overtime hours. No additional
overtime pay will be due under the Act provided that the general
conditions discussed in Sec. 778.417 are met and:
(1) The piece rate is a bona fide rate;
(2) The overtime hours for which the overtime rate is paid qualify
as overtime hours under section 7(e) (5), (6), or (7);
(3) The number of overtime hours for which such overtime piece rate
is paid equals or exceeds the number of hours worked in excess of the
applicable maximum hours standard for the particular workweek; and
(4) The compensation paid for the overtime hours is at least equal
to pay at one and one-half times the applicable minimum rate for the
total number of hours worked in excess of the applicable maximum hours
standard.
(b) The piece rate will be regarded as bona fide if it is the rate
actually paid for work performed during the nonovertime hours and if it
is sufficient to yield at least the minimum wage per hour.
(c) If a pieceworker works at two or more kinds of work for which
different straight time piece rates have been established, and if by
agreement he is paid at a rate not less than one and one-half whichever
straight time piece rate is applicable to the work performed during the
overtime hours, such piece rate or rates must meet all the tests set
forth in this section and the general tests set forth in Sec. 778.417 in
order to satisfy the overtime requirements of the Act under section 7(g)
(2).
