Piece-rate pay has traditionally been a mode of compensation based on the amount of work achieved rather than an hourly or salary basis. This method incentivizes workers to enhance productivity as their earnings are tied to the number of pieces produced or services provided. Common professions paid on a piece-rate system include automotive mechanics, furniture makers, truck drivers, and installers, among others.

California Law on Averaging Pay for Piece-Rate Workers

California labor laws ensure fair compensation for all work hours, spotlighting the rights of piece-rate workers. In 2013, a landmark California Court of Appeal ruling emphasized that piece-rate workers should be paid at least the minimum hourly wage for the time spent waiting for work or executing non-piece rate tasks.

The court referred to a California wage order stating:

“Every employer shall pay to each employee, on the established payday for the period involved, not less than the applicable minimum wage for all hours worked in the payroll period, whether the remuneration is measured by time, piece, commission, or otherwise.”

This underscores that “hours worked” encapsulates all the time an employee is under the employer’s control, mandating minimum wage payment for all such hours.

Avoiding Averaging Pitfalls

A common misconception among employers is averaging total wages earned over a pay period to ascertain if the worker received the minimum wage on average. This practice is illegal in California. Employers are required to compensate workers with an hourly rate for all time on the clock performing non-piece rate duties.

Break Time Compensation

Additionally, California law mandates paid rest periods for piece-rate workers, compensating these breaks at an hourly rate. This ensures that workers aren’t penalized for taking legally entitled rest breaks, which under traditional piece-rate systems, would have been unpaid.

A 2013 court case reinforced that a piece-rate pay formula must compensate separately for rest periods to comply with California minimum wage law.

Professions Impacted by Piece-Rate Payment

While automotive and trucking fields are prominent examples, many other professions in California might be paid on a piece-rate basis, including but not limited to:

• Furniture builders
• Plumbers
• Electricians
• Solar installers
• Pet stylists and groomers
• HVAC technicians
• Construction framers
• Tile workers
• Drywall installers
• Cable installers
• Sales workers on commission

Secure Your Right to Fair Compensation

If you’ve been employed on a piece-rate or commission system in California, you might be entitled to back-wages. Reach out to the Law Offices of Kyle K. Lauby for a complimentary consultation. Our adept legal team is ready to uphold your rights as an employee.

Contact us online or call us toll-free at 888-888-8888 to schedule your free consultation with our employment law specialists.