What Are My Rights as a California Piece-Rate Worker?

Under a piece-rate compensation system, a California piece-rate worker is paid a fixed rate for each unit produced or service performed, regardless of the amount of time the employee spent working on the task.

The American Heritage Dictionary defines the term piece-rate as: “Work paid for according to the number of units turned out.”

Consequently, a piece-rate must be based upon an ascertainable figure paid for completing a particular task or making a particular piece of goods.

The following types of workers are often paid on a piece-rate basis in California:

• Cable and telephone installation technicians
• Mechanics and car repair technicians
• Manufacturing and factory workers
• Computer repair technicians
• Delivery truck drivers
• Home-based manufacturing or assembly jobs

California Piece-Rate Worker Labor Laws

The primary labor law pertaining to California piece-rate workers is AB 1513.  AB 1513 went into effect on January 1, 2016.

This law adds to the California Labor Code, which applies “for employees who are compensated on a piece-rate basis for any work performed during a pay period.”

Specifically, the law provides that:

• Employees must be compensated for rest and recovery periods separate from any piece-rate compensation, and
• The rate of compensation for rest and recovery periods shall be the higher of “an average hourly rate determined by dividing the total compensation for the workweek, exclusive of compensation for rest and recovery periods and any premium compensation for overtime, by the total hours worked during the workweek, exclusive of rest and recovery periods” or the “applicable minimum wage.”

This means that a California piece-rate worker must be paid compensation for rest and recovery periods that is separate from their piece-rate compensation.

An employer may not treat the piece-rate compensation as including compensation for rest and recovery periods, no matter how the piece-rate was determined.

Additionally, a California piece-rate worker may also be entitled to overtime pay if they work more than 40 hours a week.

According to the United States Department of Labor, companies must pay piece-rate workers overtime pay at one-half times an employee’s regular rate of pay.

An employee’s regular rate of pay should be calculated by dividing the total pay in a workweek by the total number of hours actually worked.

Piece-Rate Compensation Lawsuits

In 2014, a piece-rate lawsuit against PetSmart ended with the pet store chain agreeing to pay $10 million in 2014 to settle with approximately 16,000 current and former employees who worked at PetSmart locations in California.

The lawsuit alleged that PetSmart violated California labor law by failing to compensate its groomers for the time they spent performing non-grooming duties, such as stocking or cleaning the store.

Another piece-rate lawsuit filed against Qualxserve, a California-based computer repair company, also ended in a settlement for $2.4 million.

This case was filed by two former employees who alleged that the company paid them a flat rate of between $28 and $38 per service call, which was not enough to cover overtime pay, off-the-clock work and reimbursement for expense.

If you are a California piece-rate worker and are not receiving proper compensation, your employer may be violating wage and hour laws. Contact a specialized California employee rights attorney now – you may be eligible to take legal action to obtain unpaid wages from your employer.

Join a Free California Sales & Piece Rate Worker Class Action Lawsuit Investigation

If you are a California employee who receives commission pay or gets paid on a piece-rate basis, but you have been denied additional minimum wage pay, your employment rights may have been violated.

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