---
kind: "section"
citation: "29 C.F.R. § 778.413"
title: "29"
number: "778.413"
heading: "Guaranty must be based on rates specified in contract."
url: "https://uscodex.org/cfr/29/778.413"
---

# §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.


## Notes

### Amendments

[46 FR 7318, Jan. 23, 1981]

### 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.

### Amendments

[46 FR 7318, Jan. 23, 1981]