---
kind: "section"
citation: "29 C.F.R. § 779.412"
title: "29"
number: "779.412"
heading: "Compensation requirements for overtime pay exemption under section 7(i)."
url: "https://uscodex.org/cfr/29/779.412"
---

# §779.412. Compensation requirements for overtime pay exemption under section 7(i).


An employee of a “retail or service establishment” who is paid on a commission basis or whose pay includes compensation representing commissions need not be paid the premium compensation prescribed by [section 7(a)](/cfr/29/7.md?p=a) for overtime hours worked in a workweek, provided the following conditions are met:

- (a) The “regular rate” of pay of such employee must be more than one and one-half times the minimum hourly rate applicable to him under [section 6](/cfr/29/6.md), and
- (b) More than half his compensation for a “representative period” (not less than one month) must represent commissions on goods or services.

## Notes

### Authority

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.

### Source

Source: 35 FR 5856, Apr. 9, 1970, unless otherwise noted.