How does FLSA 778.204 clock-pattern premium pay work?

If an employment contract or CBA in good faith sets a basic workday of 8 hours or less (or a workweek of 40 or less) and pays a premium of at least 1.5× for work outside those established hours, that extra is a true overtime premium under § 207(e)(7): excluded from the regular rate and credited under § 207(h) toward statutory overtime after 40.

Classic $20 × three 8h outside-clock + two 8h inside?

40 hours total; 24 outside-clock at 1.5×. Straight $800 + outside extra $240 = $1,040. Ordinary /overtime/ on the same punches is $800. 778.203 with one special day is $880. 778.202 with no daily excess on 8h days is $800.

How is 778.204 different from 778.202 and 778.203?

778.202 credits premiums for hours in excess of a daily or weekly standard (e.g. after 8 in a day). 778.203 credits ≥1.5× for Saturday/Sunday/holiday/rest-day work. 778.204 credits ≥1.5× for work outside the established clock pattern — and those hours can sit inside the first 40. 778.204(b) premiums only for midnight–6 a.m. or missed meal/rest do not qualify.

Five 10h with 24 outside-clock hours?

Straight $1,000 + outside extra $240; the $240 credit covers the $100 statutory half-time after 40 → $1,240 versus /overtime/ $1,100.

What if the premium is only for midnight–6 a.m.?

778.204(b): that is not a premium for work outside the established workday — it is pay for undesirable special hours. The extra stays in the regular rate and cannot be credited under § 207(e)(7).

FLSA 778.204 Clock-Pattern Premium — Outside Basic Workday

How 778.204 pays

Clock-pattern overtime premium. Section 7(e)(7) / 29 CFR 778.204 treats as an overtime premium the extra compensation paid under a bona fide contract that establishes certain hours as the basic, normal, or regular workday (not exceeding 8) or workweek (not exceeding 40) and pays a premium of not less than 1.5× for work outside those hours. The extra is excluded from the regular rate and credited under § 207(h) toward statutory overtime after 40.

Premium hours inside the first 40. Unlike ordinary after-40 overtime, clock-pattern premiums can attach to hours that never leave the first 40 of the workweek — three night shifts at 1.5× plus two day shifts at straight time on a 40-hour week still pays the night extras. That is the classic $1,040 vs /overtime/ $800 gap.

Not 778.202 / not 778.203. 778.202 credits premiums for hours in excess of a daily or weekly standard (after 8 in a day). 778.203 credits ≥1.5× for Saturday/Sunday/holiday/rest-day work. 778.204 is the outside-clock track. Under 778.204(b), a premium limited to midnight–6 a.m. or to missed meal/rest conditions is not an outside-workday premium and stays in the regular rate.

Classic · $20 · five 8h · 24h outside-clock at 1.5× → $1,040 (vs /overtime/ $800 · 778.203 $880 · 778.202 $800).
One outside day · 8h at 1.5× → $880 (same $ as 778.203 classic, different statute).
Five 10h · 24h outside → $1,240 (vs /overtime/ $1,100).
Four 8h outside → $1,120.
Outside 1.25× (below 1.5) · 24h → $920 (extra in RR; no credit).
Undesirable-only on five 10h / 24 outside → $1,364 (fails 778.204(b); vs qualifies $1,240).
Clock-pattern off · five 8h → $800.

Sources

29 CFR § 778.204 — “Clock pattern” premium pay (Cornell LII, HTTP 200)
29 CFR § 778.204 — eCFR current (HTTP 200)
29 U.S.C. § 207 — § 207(e)(7) / § 207(h) (Cornell LII, HTTP 200)
29 U.S.C. § 207 — Office of the Law Revision Counsel (HTTP 200)
/flsa-778-202-daily-premium/ — daily-standard cousin (§ 207(e)(5))
/flsa-778-203-special-day/ — special-day cousin (§ 207(e)(6))

FAQ

Classic three 8h outside + two 8h inside?

Straight $800 + outside extra $240 → $1,040 vs /overtime/ $800 vs 778.203 $880 vs 778.202 $800.

Same as 778.202 daily premium?

No. 778.202 is hours over an 8-hour (or other) daily standard. 778.204 is hours outside the clock, which can be inside the first 40 and need not exceed 8 in the day.

Same as 778.203 special-day?

No. 778.203 is Saturday/Sunday/holiday/rest-day. One 8h outside-clock day can print the same $880 as 778.203’s classic, but three outside days → $1,040 here while 203 still credits only the last special day.

Midnight–6 a.m. only premium?

778.204(b) fails — check “undesirable only.” Extra stays in the regular rate; on a 50h week with 24 outside at 1.5× that path pays $1,364 vs qualifying clock-pattern $1,240.

No clock-pattern contract?

Uncheck the contract gate — ordinary § 207(a) after-40 (five 8h → $800).