Regulations last checked for updates: May 11, 2024

Title 29 - Labor last revised: Apr 30, 2024
§ 778.324 - Effect on hourly rate employees.

A similar situation is presented where employees have been hired at an hourly rate of pay and have customarily worked a fixed workweek. If the workweek is reduced from 40 to 35 hours without reduction in total pay, the average hourly rate is thereby increased as in § 778.322. If the reduction in work schedule is accompanied by a new agreement altering the mode of compensation from an hourly rate basis to a fixed salary for a variable workweek up to 40 hours, the results described in § 778.323 follow.

authority: 52 Stat. 1060, as amended; 29 U.S.C. 201
source: 33 FR 986, Jan. 26, 1968, unless otherwise noted.
cite as: 29 CFR 778.324