If the employee is paid on an hourly basis, that amount is the regular rate. The regular rate may not be less than the minimum wage. If the employee is paid a salary, based on a 40hour workweek, the regular rate is determined as follows:
The result is the rate used to compute overtime. Payroll records must reflect overtime pay of 1 1/2 times that rate for hours over 40 in a workweek.
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