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.

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