Are employers allowed to pay a lower rate for piecework?

In North Carolina, employers are allowed to pay a lower rate for piecework than the minimum wage rate, but this rate must meet certain standards. According to the NC Department of Labor, piecework rates must be at least equivalent to the applicable minimum wage rate for a 40-hour workweek, which is currently $7.25 per hour. The rate must also be based on the amount of work that can be reasonably expected to be done by a single employee on a 40-hour workweek. Finally, the piecework rate must not provide the employer with an unfair advantage over the employee or result in the employee being paid less than the minimum wage for the hours worked. Employers must also make a variety of records available to the Department of Labor, including records of all piecework rates and any wages paid to employees. Failure to do so can result in fines. Employers should also note that any employees under the age of 18 must be paid the full minimum wage rate, regardless of whether they are working by piece, so it is important to check that all young employees are being paid fairly. In conclusion, employers in North Carolina are allowed to pay a lower rate for piecework than the minimum wage rate, provided that this rate meets the criteria established by the Department of Labor. However, it is important for employers to ensure that any piecework rate is fair and that all employees are being paid the applicable minimum wage.

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