§210.420. Regular Rate of Pay for Determination of Overtime

a)         Section 4a of the Act requires that overtime must be compensated at a rate not less than one and one-half times the regular rate at which the employee is actually employed.  The regular rate of pay at which the employee is employed shall in no event be less than the statutory minimum.  If the employee's regular rate of pay is higher than the statutory minimum, his overtime compensation must be computed at a rate not less than one and one-half times such higher rate.

 

b)         The regular rate is a rate per hour.  The Act does not require employers to pay employees on an hourly rate basis.  Their earnings may be determined on a piece-rate, salary, commission, or some other basis, but in such case the overtime pay due must be computed on a basis of the hourly rate derived from such earnings.