Piece-Rate Legislation (AB 1513)

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[1] for mandated rest and recovery periods and other work time that does not generate piece-rate earnings. 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 breaks, recovery periods 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. 

Below are links to additional information about AB 1513/Labor Code section 226.2, and a list of employers who have elected to make payments to workers in order to obtain the special affirmative defense created by the statute.

Resources

Online Searchable Database

List of Employers who submitted a Notice of Election to Make Back Payments

 

If you have additional questions or concerns after reviewing these materials, please contact AB1513@dir.ca.gov.

What's New

December 22, 2015 DIR Announces New Law on Compensation for Piece-Rate Workers

December 2016



[1]Piece-rate or piece-work is defined as “Work paid for according to the number of units turned out.” American Heritage Dictionary