Piece-Rate Compensation Requirements

Piece-rate compensation is based on paying a specified sum for completing a particular task or making a particular item. Effective January 1, 2016, Assembly Bill 1513 made changes to the Labor Code, adding section 226.2 concerning how to compensate piece-rate workers for mandated rest and recovery periods and other work time that does not generate piece-rate earnings. Among other things, Assembly Bill 1513 established pay requirements for mandated rest breaks, recovery periods and other nonproductive time, including related pay stub requirements.

The bill also provided a short window of time in 2016 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 piece-rate compensation requirements.



If you have additional questions or concerns after reviewing these materials, please contact DLSE2@dir.ca.gov.