How does the FLSA 778.501 split-day plan work?

Under a split-day (Poxon) plan the normal workday is artificially divided into a low straight-time portion and a purported overtime portion (for example first 4 hours at $20 and the rest at $30). Those intra-day overtime labels do not qualify under section 7(e)(5), (6), or (7). The true regular rate is total remuneration divided by hours worked, and the employee is owed additional half-time after 40 on that regular rate.

Classic five 10h with artificial $20 / first 4h then 1.5×?

Each day pays 4×$20 + 6×$30 = $260. Five days = contract $1,300. Regular rate $26. Extra half-time on 10 OT hours is $130. Total $1,430.

Same as 778.202 daily overtime premiums?

No. Section 778.202 covers bona fide daily overtime premiums of at least 1.5× for hours over a bona fide daily standard that can be excluded from the regular rate and credited. The split-day plan’s purported overtime falls inside the normal workday and cannot qualify.

Same as 778.204 clock-pattern premiums?

No. Section 778.204 / section 7(e)(7) clock-pattern premiums are for work outside the contracted basic workday or workweek. Split-day labels divide the normal day itself.

What if the employer accepts the labels and pays no more?

On the classic facts that leaves pay at the contract $1,300 and underpays the additional $130 half-time due under 778.501 / Helmerich & Payne.

FLSA 778.501 Split-Day Plan — Artificial OT Labels Not Creditable

FLSA 778.501 split-day plan

29 CFR § 778.501 (with 29 U.S.C. § 207(e); Walling v. Helmerich & Payne, 323 U.S. 37): artificially labeling part of the normal workday as “overtime” at 1.5× a low hourly rate is not a qualifying overtime premium — true RR = total remuneration ÷ hours; pay additional half-time after 40. Classic artificial $20 first 4h / $30 rest × five 10h → $1,430 vs accept-labels $1,300 vs /overtime/ at $20 $1,100 vs 778.311 $1,210 vs 778.119 $1,292.50.

How 778.501 pays

Labels are fictitious. Section 778.501 addresses the “split-day” or “Poxon” plan: the normal workday is artificially divided into a low “straight-time” portion and a purported “overtime” portion (often the first 2 or 4 hours at a low rate, the rest at 1.5× that rate). Because those premiums fall inside the basic workday and are not geared to hours in excess of the employee’s normal working hours, they do not qualify under section 7(e)(5), (6), or (7).

True regular rate + additional half-time. Total remuneration for the week ÷ hours worked is the regular rate. The employee is owed additional overtime compensation of one-half that regular rate for each hour over 40. The employer cannot claim the intra-day “overtime” labels already satisfied the Act.

Not 778.202 / not 778.204 / not waiting-time. § 778.202 is bona fide daily overtime that can credit. § 778.204 is outside-clock § 7(e)(7) premiums. This page recomputes RR from the split-day contract pay and still pays extra half-time after 40.

Classic · artificial $20 first 4h / $30 rest × five 10h → contract $1,300 → RR $26 → +$130 → $1,430.
Accept-labels (no additional) · same punches → $1,300 (underpays $130).
CFR scaled · six 8h days @ $20 / 4h split → contract $1,200 → RR $25 → +$100 → $1,300.
No-split · portion ≥ 10h × five 10h @ $20 → ordinary after-40 $1,100.
Short week · four 8h (no weekly OT) → $800.

Sources

Cornell LII 29 CFR § 778.501 (HTTP 200)
eCFR 29 CFR § 778.501 (HTTP 200)
29 CFR § 778.501 — GovInfo CFR XML (HTTP 200)
29 U.S.C. § 207 (HTTP 200)
WHD Fact Sheet #23 (HTTP 200)

FAQ

Is a split-day “overtime” label an FLSA overtime premium?

No. 778.501: premiums inside the normal workday at 1.5× an artificially low rate do not qualify under § 7(e)(5)/(6)/(7). Recompute RR and pay additional half-time after 40.

Classic five 10h at artificial $20 / first 4h then 1.5×?

Contract $1,300 → RR $26 → extra half-time $130 → total $1,430 vs accept-labels $1,300 vs /overtime/ at $20 $1,100.

Same as /flsa-778-202-daily-premium/?

No. 778.202 is bona fide daily OT that can be excluded from RR and credited. Split-day labels divide the normal day and cannot credit.

Same as /flsa-778-204-clock/?

No. 778.204 / § 7(e)(7) is for work outside the contracted basic workday or workweek.

What about the CFR $5 example?

Scaled to $20: six 8h days → contract $1,200 → RR $25 → additional $100 → $1,300.