Are employers allowed to pay a lower rate for piecework?

Yes, employers in California are allowed to pay a lower rate for piecework. According to the California Department of Industrial Relations, employers may pay workers piece rate, which means they will be paid a certain amount for each unit of work completed. Depending on the industry, the piece rate may be set by either the employer or the employee. However, the piece rate cannot be lower than the legally mandated minimum wage rate. This means that the employer must ensure that their workers will be earning at least the minimum wage. This means that the employer must calculate what they would need to pay the employee if they worked at the regular wage rate and then ensure that the piece rate provides the same amount or more. In addition, employers must also ensure that the piece rate is fair and equitable. This means that the piece rate should be based on the amount of time and effort required to complete the piece. Employers should also ensure that workers are not receiving a lower rate for performing the same task as their coworkers. Finally, California employers must also ensure that piece rate workers are provided with the same rights and benefits that are available to regular wage workers. This includes ensuring that piece rate workers receive the same benefits, such as overtime and meal and rest periods, as employees who work at the regular rate.

Related FAQs

What is the difference between salaried and non-salaried employees?
Are employers required to pay for employee training?
Is it legal to dock an employee's pay for violating a policy?
Are employers required to pay double time for work on holidays?
Are employers allowed to pay a lower rate for piecework?
What is the overtime rate for hourly employees?
When can an employer legally deduct wages from an employee's paycheck?
What is the difference between a minimum wage and a prevailing wage?
What is the federal minimum wage?
Are employers required to provide a rest break and/or meal break?

Related Blog Posts

What is Wage and Hour Law and How Does it Affect Your Business? - July 31, 2023
What Employers Need to Know About Wage and Hour Law - August 7, 2023
The Basics of Payroll Law and Compliance - August 14, 2023
Compensating Your Employees - Tips for Wage and Hour Law Compliance - August 21, 2023
Understanding Overtime Rules Under Wage and Hour Law - August 28, 2023