---
kind: "section"
citation: "29 C.F.R. § 779.421"
title: "29"
number: "779.421"
heading: "Basic rate for computing overtime compensation of nonexempt employees receiving commissions."
url: "https://uscodex.org/cfr/29/779.421"
---

# §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)](/cfr/29/7.md?p=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)](/cfr/29/7.md?p=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](/cfr/29/part548.md) of this chapter.


## 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.