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Overtime pay for a non-exempt employee depends upon the employee's "regular rate" of pay. Part 778 of the regulations contains all of the various ways to determine an employee's regular rate. Under 29 C.F.R. 778.109, an employee's regular rate of pay is an hourly rate, and under 29 C.F.R. 778.107, it must be at least minimum wage. This is true no matter what pay method is used to determine an employee's pay. Regardless of whether a non-exempt employee is paid by an hourly rate, salary, piece rate, day rate, book rate, flag rate, job or task rate, commission, or by some other method or combination of methods, the pay must be converted into an hourly equivalent to arrive at the "regular rate" for overtime computation purposes. See "Calculation of the Regular Rate of Pay" below for the basic way of computing the regular rate.
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