Add up everything the technician earned in the workweek (per-stop pay, commissions, production bonuses and any hourly pay), divide by every hour worked to get the regular rate, then pay an extra half of that rate for each hour over 40. The per-stop pay already covers straight time, so only the half-time premium is added. Then check the week separately against the minimum wage.
Production pay is a fair way to run routes. It rewards the techs who move, and it is legal for non-exempt employees. It does not replace overtime, and the math differs enough from hourly pay that a payroll setup built for hourly crews needs checking.
The rule, and where it comes from
Under the Fair Labor Standards Act (FLSA), overtime is 1.5 times the employee’s “regular rate” for hours over 40 in a workweek. The regular rate is the week’s total pay for work, minus a short list of exclusions, divided by the hours actually worked (DOL Fact Sheet #56A). Two regulations apply it to production pay:
- Piece rate (per stop). Add the week’s piece-rate earnings to any production bonuses and pay for other hours worked, divide by all hours, and pay an extra half of that rate for each overtime hour (29 CFR 778.111).
- Commission. A commission paid for the week is added to the employee’s other earnings for that week, divided by total hours, and the overtime hours get an extra half of the result (29 CFR 778.118).
Only half, because the per-stop and commission money already paid for every hour, including the hours over 40. What is still owed is the premium. Section 778.111 says so directly: only additional half-time pay is required where the employee has already received straight-time pay at piece rates for all hours worked.
A worked example
The figures here are invented. Say a technician is paid $18 a stop. In one workweek they run 52 stops, earn $150 in commission on add-on services sold at the door, and get a $50 quality bonus promised in the pay plan. They worked 48 hours.
- Total pay: 52 stops at $18 is $936, plus $150, plus $50, for $1,136.
- Regular rate: $1,136 divided by 48 hours is $23.67 an hour (rounded).
- Overtime premium: half the regular rate for each of the 8 overtime hours, $1,136 ÷ 48 × 0.5 × 8, for $94.67.
- Gross pay for the week: $1,230.67.
Three ways to get this wrong:
- No premium at all, on the theory that the stop rate covers everything. The tech is short $94.67 this week.
- Premium on the stop pay only. $936 divided by 48 is $19.50, so the premium comes out to $78. The tech is short $16.67 for the week, because the commission and bonus were left out.
- Time and a half on top of everything. Paying 1.5 times $23.67 for the 8 hours adds $284 instead of $94.67. That is not a violation, but it overpays by $189.33 a week.
The bonus counts because it was promised in advance. A truly discretionary bonus, where both the decision and the amount are yours alone and nothing was promised, can be left out (Fact Sheet #56A). A bonus for hitting a stop count or a review score is not discretionary.
Check the minimum wage every workweek
Production pay has to clear the minimum wage for all hours worked in each workweek (DOL FLSA FAQ). Each week stands alone, so a strong week cannot cover a weak one (29 CFR 778.104). The weeks to watch are rain weeks, training weeks and the first weeks of a new route.
Say the same tech has a rain week: 22 stops for $396 across 45 hours, mostly waiting and rescheduling. That works out to $8.80 an hour.
Under the federal $7.25, they clear the minimum. The regular rate is $8.80, and they are owed half of that for 5 overtime hours: $22.00, for $418 in all.
In Florida, where the minimum wage reached $15.00 on September 30, 2026 (Fla. Const. Art. X, s. 24), 45 hours at $15 is $675. You owe a $279 top-up. Where a state minimum wage is higher than the federal one, the regular rate cannot be lower than that state minimum (29 CFR 778.5), so the premium is half of $15 for 5 hours, $37.50. The week costs $712.50.
One way to avoid the surprise is to pay a guaranteed hourly floor with production pay on top, or the greater of the two. If piece earnings fall short of a guaranteed hourly rate, the guaranteed rate becomes that week’s regular rate (778.111(b)).
Commissions paid after the week ends
Renewal and sales commissions are often figured monthly. Until the amount is known, you may pay overtime on the other earnings. Once the commission is paid, it must, as a general rule, be spread back over the workweeks in which it was earned, and extra overtime paid for each week that had overtime (29 CFR 778.119).
Say a tech earns a $400 renewal commission for a four-week month, $100 a week. In a week they worked 45 hours, that $100 raises the regular rate by $2.22. They are owed half of that for 5 hours: $5.56. Small per week, but it is owed, and it is easy to miss when the commission runs through payroll weeks after the hours.
Are there other lawful ways to handle overtime on production pay?
Two exist, and both are narrow.
Time and a half the stop rate. An employee and employer can agree in advance to pay at least 1.5 times the piece rate for pieces produced during overtime hours. The straight-time rate must be the rate actually paid for non-overtime work and must yield at least the minimum wage per hour (29 CFR 778.418). On a route, that means knowing which stops were done after hour 40, which is hard to track honestly.
The retail or service commission exemption, section 7(i). It applies only if the employer is a retail or service establishment (at least 75% of annual sales not for resale and recognized as retail in its industry), the employee’s regular rate is more than 1.5 times the minimum wage, and commissions are more than half of pay over a representative period of one month to one year (Fact Sheet #20). Whether a given pest control company qualifies, and whether its pay plan counts as commission for this test, are questions to settle with counsel before relying on it.
State rules that change the math
California requires piece-rate employees to be paid for rest and recovery periods separately from the piece rate, at the higher of their average hourly rate for the week or the minimum wage. Other nonproductive time under the employer’s control, such as a required morning meeting that the stop rate does not pay for, must be paid separately at no less than the minimum wage. The wage statement has to show those hours, rates and amounts (DIR, Labor Code 226.2). California also counts overtime after 8 hours in a day and double time after 12 (DIR).
Alaska, Colorado and Nevada have daily overtime too (Nevada only for employees paid under 1.5 times its minimum wage), so a 10-hour day can create overtime hours in a 38-hour week. The regular-rate math is the same; the count of overtime hours changes. The details are in do pest control technicians get overtime.
What to do this week
- Pull one recent overtime week for each production-paid tech and redo the math above by hand. Compare it with what payroll actually paid.
- List every type of pay in your plan: stops, commissions, bonuses, spiffs. Mark which ones payroll includes in the regular rate.
- Add a weekly minimum wage check, or a guaranteed hourly floor.
- If commissions are paid monthly, set up the true-up for overtime weeks.
- Write the pay plan down and have each tech sign it, so the bonus terms and the overtime method are not a matter of memory.
SimplyHR checks route and production pay plans against the overtime rules for pest control companies, and compensation architecture and bonus design are part of the Strategic retainer. If you want a second set of eyes on your plan before spring, take the free 12-question HR diagnostic or book a call.