A form of wage payment known by various names, book rate, flag rate, task rate, or stint rate, bears similarities to piece rate payments on the one hand and daily or job rates on the other. In this variation, the employer applies a rate, usually determined by some sort of study or sometimes an industry standard, to various tasks performed by an employee. A common application for book or flag rate pay is found in the case of mechanics working for automobile repair shops. The employer will award four hours' worth of pay, for example, to a mechanic who completes a certain type of repair job on a car. The actual work may take less or more time than four hours. In such a case, the regulations found at 29 C.F.R. 778.312, 778.313, and 778.314 will apply. 29 C.F.R. 778.312 notes that these situations often turn out to be either a daily rate method or a piece rate method with a guaranteed hourly minimum. 29 C.F.R. 778.313 governs how overtime pay is calculated for employees paid a book, flag, or task rate.
As with any other pay method, the book or flag rate method may in no case result in less than minimum wage for all hours actually worked, plus time and a half for hours worked in excess of 40 in a workweek.
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