Piece-rate wage change 1/1/2016

Compensating Piece-Rate Workers for Rest and Recovery Periods and Other Nonproductive Time

Effective January 1, 2016, AB 1513 adds a new section 226.2 to the Labor Code concerning how to compensate piece-rate workers for mandated rest and recovery periods and other work time that does not generate piece-rate earnings. (Piece rate or piece work is defined as “Work paid for according to the number of units turned out.” [American Heritage Dictionary.] Piece-rate compensation is based on paying a specified sum for completing a particular task or making a particular item.)

This administration-sponsored law does two things.

Going forward, it establishes pay requirements for mandated rest and recovery breaks and other nonproductive time, including related wage stub requirements.

Looking backward, it provides a short window of time for employers to make back wage payments to workers for previously uncompensated or undercompensated rest and recovery periods and other nonproductive time in exchange for relief from statutory penalties and other damages.

Click here for DIR’s website with Fact Sheets, FAQs, the text of the legislation, forms and more… 

Click for the DIR’s announcement  DIR_Rules_PieceWork_Dec_2015

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