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29 CFR § 776.5 - Coverage not dependent on method of compensation.

---
identifier: "/us/cfr/t29/s776.5"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "29 CFR § 776.5 - Coverage not dependent on method of compensation."
title_number: 29
title_name: "Labor"
section_number: "776.5"
section_name: "Coverage not dependent on method of compensation."
chapter_name: "WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR"
subchapter_number: "B"
subchapter_name: "STATEMENTS OF GENERAL POLICY OR INTERPRETATION NOT DIRECTLY RELATED TO REGULATIONS"
part_number: "776"
part_name: "INTERPRETATIVE BULLETIN ON THE GENERAL COVERAGE OF THE WAGE AND HOURS PROVISIONS OF THE FAIR LABOR STANDARDS ACT OF 1938"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "52 Stat. 1060, as amended; 29 U.S.C. 201-219."
cfr_part: "776"
---

# 776.5 Coverage not dependent on method of compensation.

The Act's individual employee coverage is not limited to employees working on an hourly wage. The requirements of section 6 as to minimum wages are that “each” employee described therein shall be paid wages at a rate not less than a specified rate “an hour”. 
<sup>15</sup>
[^] This does not mean that employees cannot be paid on a piecework basis or on a salary, commission, or other basis; it merely means that whatever the basis on which the workers are paid, whether it be monthly, weekly, or on a piecework basis, they must receive at least the equivalent of the minimum hourly rate. “Each” and “any” employee obviously and necessarily includes one compensated by a unit of time, by the piece, or by any other measurement. 
<sup>16</sup>
[^] Regulations prescribed by the Administrator (part 516 of this chapter) provide for the keeping of records in such form as to enable compensation on a piecework or other basis to be translated into an hourly rate. 
<sup>17</sup>
[^]

<sup>15</sup> Special exceptions are made for Puerto Rico, the Virgin Islands, and American Samoa.

<sup>16</sup> *United States* v. *Rosenwasser,* 323 U.S. 360.

<sup>17</sup> For methods of translating other forms of compensation into an hourly rate for purposes of sections 6 and 7, see parts 531 and 778 of this chapter.

[35 FR 5543, Apr. 3, 1970]