Common Contracts
1 similar Salary Arrangement contracts
Wage and Hour Division, Labor § 778.326Salary Arrangement • June 24th, 2022
arrangement by providing that the sal- ary which formerly covered a fixed workweek of 40 hours now covers a variable workweek up to 40 hours. If this is the new agreement, the em- ployee receives $200 for workweeks of varying lengths, such as 35, 36, 38, or 40 hours. His rate thus varies from week to week, but in weeks of 40 hours or over, it is $5 per hour (since the agree- ment of the parties is that the salary covers up to 40 hours and no more) and his overtime rate, for hours in excess of 40, thus remains $7.50 per hour. Such a salary arrangement presumably con- templates that the salary will be paid in full for any workweek of 40 hours or less. The employee would thus be enti- tled to his full salary if he worked only 25 or 30 hours. No deductions for hours not worked in short workweeks would be made. (For a discussion of the effect of deductions on the regular rate, see
