§ 778.313. Computing overtime pay under the Act for employees compensated on task basis.
402 words·~2 min read·
/us/cfr/t29/s§ 778.313·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)An example of the operation of a plan of the second type discussed in § 778.312 may serve to illustrate the effects on statutory overtime computations of payment on a task basis. Assume the following facts: The employment agreement establishes a basic hourly rate of \$5 per hour, provides for the payment of \$7.50 per hour for overtime work (in excess of the basic workday or workweek) and defines the basic workday as 8 hours, and the basic workweek as 40 hours, Monday through Friday. It further provides that the assembling of a machine constitutes a day's work. An employee who completes the assembling job in less than 8 hours will be paid 8 hours' pay at the established rate of \$5 per hour and will receive pay at the "overtime" rate for hours worked after the completion of the task. An employee works the following hours in a particular week: ::: {width="100%"} ::: {.gpotbl_div} M T W T F S S Hours spent on task 6 7 7 9 8 1/2 6 0 Day's pay under contract \$40 \$40 \$40 \$40 \$40 \$60 0 Additional hours 2 0 2 0 1/2 0 0 Additional pay under contract \$15 0 \$15 \$7.50 \$7.50 0 0 ::: :::
(b)In the example in paragraph
(a)of this section the employee has actually worked a total of 48 hours and is owed under the contract a total of \$305 for the week. The only sums which can be excluded as overtime premiums from this total before the regular rate is determined are the extra \$2.50 payments for the extra hour on Thursday and Friday made because of work actually in excess of 8 hours. The payment of the other premium rates under the contract is either without regard to whether or not the hours they compensated were in excess of a bona fide daily or weekly standard or without regard to the number of overtime hours worked. Thus only the sum of \$5 is excluded from the total. The remaining \$300 is divided by 48 hours to determine the regular rate---\$6.25 per hour. One-half this rate is due under the Act as extra compensation for each of the 8 overtime hours---\$25. The \$5 payment under the contract for actual excess hours may be credited and the balance---\$20---is owed in addition to the \$305 due under the contract. \[46 FR 7315, Jan. 23, 1981\]