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4 Tips for California Employers on Piece-Rate Pay

July 19, 2021

Via: SHRM

Apiece-rate plan is a wage payment system where an employee is paid a fixed amount for each unit produced or action completed. Piece rate is used in many different industries, including automobile repair, trucking, manufacturing and call centers. An example of a piece-rate plan is an automobile mechanic who is paid a certain amount per tune-up or a factory worker who is paid a certain amount per number of widgets produced.

Piece-rate law under the California Labor Code is not the same as piece-rate law under the Federal Labor Standards Act (FLSA), so it is important for California employers to make sure they comply with California law.

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