Workplace Word - California Court of Appeal Decision May Signal the End of Piece-Rate Compensation Plans
by Anne E. Hopkins
This issue of the Workplace Word will address a recent California court decision invalidating piece-rate compensation plans:
- Piece-rate compensation plans compensate employees based on the tasks they perform rather than hours worked;
- Even if an employee's average wage is greater than minimum wage, piece-rate compensation can violate the minimum wage law; and
- Employers may be required to pay an additional hourly wage to piece-rate employees.