---
kind: "section"
citation: "29 C.F.R. § 778.324"
title: "29"
number: "778.324"
heading: "Effect on hourly rate employees."
url: "https://uscodex.org/cfr/29/778.324"
---

# §778.324. Effect on hourly rate employees.


A similar situation is presented where employees have been hired at an hourly rate of pay and have customarily worked a fixed workweek. If the workweek is reduced from 40 to 35 hours without reduction in total pay, the average hourly rate is thereby increased as in [§ 778.322](/cfr/29/778.322.md). If the reduction in work schedule is accompanied by a new agreement altering the mode of compensation from an hourly rate basis to a fixed salary for a variable workweek up to 40 hours, the results described in [§ 778.323](/cfr/29/778.323.md) follow.


## Notes

### Authority

Authority: 52 Stat. 1060, as amended; 29 U.S.C. 201 et seq. Section 778.200 also issued under Pub. L. 106-202, 114 Stat. 308 (29 U.S.C. 207(e) and (h)).

### Source

Source: 33 FR 986, Jan. 26, 1968, unless otherwise noted.