(1) As provided in Section 7 of the FLSA, covered employees shall receive overtime compensation at a rate of one and one-half times the employee's regular hourly rate for all hours in a pay status over 40 in a workweek, unless the agency and the employee agree to the accrual and use of nonexempt compensatory time in accordance with 29 CFR Part 553. (Exceptions are described in Section 7 and 29 CFR 553 Subpart C.)