29 CFR § 779.421 - Basic rate for computing overtime compensation of nonexempt employees receiving commissions.

---
identifier: "/us/cfr/t29/s779.421"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "29 CFR § 779.421 - Basic rate for computing overtime compensation of nonexempt employees receiving commissions."
title_number: 29
title_name: "Labor"
section_number: "779.421"
section_name: "Basic rate for computing overtime compensation of nonexempt employees receiving commissions."
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: "779"
part_name: "THE FAIR LABOR STANDARDS ACT AS APPLIED TO RETAILERS OF GOODS OR SERVICES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Secs. 1-19, 52 Stat. 1060, as amended; 75 Stat. 65; Sec. 29(B), Pub. L. 93-259, 88 Stat. 55; 29 U.S.C. 201-219."
regulatory_source: "35 FR 5856, Apr. 9, 1970, unless otherwise noted."
cfr_part: "779"
---


# 779.421 Basic rate for computing overtime compensation of nonexempt employees receiving commissions.

The overtime compensation due employees of a retail or service establishment who do not meet the exemption requirements of section 7(i) may be computed under the provisions of section 7(g)(3) of the Act if the employer and employee agree to do so under the conditions there provided. Section 7(g)(3) permits the use of a basic rate established, pursuant to agreement or understanding in advance of the work, in lieu of the regular rate for the purpose of computing overtime compensation. The use of such a basic rate for employees of a retail or service establishment compensated wholly or partly by commissions is authorized under the conditions set forth in part 548 of this chapter.