Calculating Time Basis of Rates
It is the general practice in the industry to base rates upon one shift of 8 hours per day, 40 hours per week, or 176 hours per month of a 30-day consecutive period.
If the equipment is rented by the day, the rate for overtime is one-eighth of the daily rate for each hour in excess of eight. If it is rented by the week, the rate for overtime is 1/40 of the weekly rate for each hour in excess of 40. If it is rented by the month, the overtime rate is 1/176 of the monthly rate for each hour in excess of 176 hours in any one 30-day consecutive period. There are instances reported by distributors where the lessor bases rental rates on one shift of 8 hours per day, 40 hours per week, and 160 hours per month on a 28-day month. Overtime rates for this practice are similar to those reported above. All time basis or rates, including overtime, should be spelled out in a written agreement between lessee and lessor before the rental period begins. Many distributors do not rent by the day or by the week, especially in the case of large equipment, even though daily and weekly rates appear in this compilation.