29 CFR 779.410 : Labor (§ 0.735-1 To Parts 4908-4999) — (§ 500.0 To Parts 871-899) — Regulations Relating To Labor (Continued) (§ 500.0 To Parts 871-899) — Wage And Hour Division, Department Of Labor (§ 500.0 To Parts 871-899) — Statements Of General Policy Or Interpretation Not Directly Related To Regulations (§ 775.0 To § 794.144) — The Fair Labor Standards Act As Applied To Retailers Of Goods Or Services (§ 779.0 To § 779.515) — Provisions Relating To Certain Employees Of Retail Or Service Establishments (§ 779.400 To § 779.421) — Employees Compensated Principally By Commissions (§ 779.410 To § 779.421) — Statutory provision.

Section 7 of the Act provides, in subsection (i):

(i) No employer shall be deemed to have violated subsection (a) by employing any employee of a retail or service establishment for a workweek in excess of the applicable workweek specified therein, if (1) the regular rate of pay of such employee is in excess of one and one-half times the minimum hourly rate applicable to him under section 6, and (2) more than half his compensation for a representative period (not less than 1 month) represents commissions on goods or services. In determining the proportion of compensation representing commissions, all earnings resulting from the application of a bona fide commission rate shall be deemed commissions on goods or services without regard to whether the computed commissions exceed the draw or guarantee.

There are briefly set forth in §§ 779.411 to 779.421 some guiding principles for determining whether an employee's employment and compensation meet the conditions set forth in section 7(i).