29 CFR § 778.413 - Guaranty must be based on rates specified in contract.
---
identifier: "/us/cfr/t29/s778.413"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "29 CFR § 778.413 - Guaranty must be based on rates specified in contract."
title_number: 29
title_name: "Labor"
section_number: "778.413"
section_name: "Guaranty must be based on rates specified in contract."
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: "778"
part_name: "OVERTIME COMPENSATION"
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 Section 778.200 also issued under Pub. L. 106-202, 114 Stat. 308 (29 U.S.C. 207(e) and (h))."
regulatory_source: "33 FR 986, Jan. 26, 1968, unless otherwise noted."
cfr_part: "778"
---
# 778.413 Guaranty must be based on rates specified in contract.
The guaranty of pay must be “based on the rate so specified,” in the contract. If the contract specifies a regular rate of $5 and an overtime rate of $7.50 and guarantees pay for 50 hours and the maximum hours standard is 40 hours, the amount of the guaranty must be $275, if it is to be based on the rates so specified. A guaranty of $290 in such a situation would not, obviously, be based on the rates specified in the contract. Moreover, a contract which provides a variety of different rates for shift differentials, arduous or hazardous work, stand-by time, piece-rate incentive bonuses, commissions or the like in addition to a specified regular rate and a specified overtime rate with a guaranty of pay of, say, $290 from all sources would not qualify under this section, since the guaranty of pay in such a case is not based on the regular and overtime rates specified in the contract.
[46 FR 7318, Jan. 23, 1981]