Are employers allowed to pay a lower rate for piecework?

In Maryland, employers are allowed to pay a different rate for piecework, as long as it is the same as or higher than the minimum wage. Generally, piecework wages are calculated by multiplying the quantity of the product or service by the rate of pay. Employers are required to pay their employees at least the Maryland state minimum wage of $11.75 as of January 1, 2020. However, employers can pay less than the minimum wage for piecework if the employee agrees. This agreement is known as an individual piece rate agreement and must be in writing and signed by both the employer and the employee. The employee must agree that the piece rate is equal to or greater than the minimum wage for that type of work. Employers should not use piecework as a way to get around paying the minimum wage. Workers are still entitled to the state minimum wage, no matter what type of payment arrangement they have in place. It is important for employers to understand their obligations under Maryland Wage and Hour Law so they can ensure that their employees are properly paid for their work.

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Are employers allowed to pay a lower rate for piecework?

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