Piece-Rate Pay

News & Analysis as of

Employment Law Commentary -- Volume 25, Issue 9 -- September 2013: Where Average Isn’t Good Enough: California Courts Continue to...

Employers who pay non-exempt employees solely on a commissions or piece-rate basis probably know by now that doing so in California is an increasingly risky proposition. Over the past few years, various California courts have...more

California Supreme Court Action In Piece-Rate Pay Case Causes Concerns About Alternative Pay Systems

Gonzalez v. Downtown LA Motors, LP, No. S210681 (July 17, 2013): In April of 2013, a California Court of Appeal decided how automobile service technicians should be paid while waiting between jobs....more

Further Down the Rabbit-Hole we go: California’s Troubling Treatment of Incentive-Based Compensation Systems

On July 17, 2013, the California Supreme Court denied review of the Second Appellate District’s decision in Gonzalez v. Downtown LA Motors, 2013 Cal. App. LEXIS 257 (Cal. App. 2d Dist. Mar. 6, 2013), which addressed...more

California State Supreme Court Denies Review Of Piece-Rate Case: Lower Court Ruling To Stand

The California Supreme Court denied review of a California Court of Appeal case, which held that piece-rate-paid employees are entitled to separate hourly pay for “waiting” time. Gonzalez v. Downtown LA Motors....more

California Wage/Hour Update No. 3, July 2013: Appellate Court Attacks Piece-Rate Compensation – Again

The piece-rate compensation system, common among automotive technicians, agricultural workers, manufacturing employees, truck drivers, and others, has been a viable and rewarding form of compensation in California for over a...more

Employment Law Reporter - June 2013: Summer Storm Employment Laws Being Considered By The California Legislature This Summer

The skies are clear, but there is a storm coming for California employers. The California Legislature has a full agenda of employment laws to consider over the summer months that will have a substantial impact on employers. ...more

California Courts of Appeal Side with Employees in Two Wage-and-Hour Cases against Safeway

Twice in one week, the California Court of Appeal sided with employees in two cases against grocery giant, Safeway Inc. ...more

California Court of Appeal: rest periods must be separately compensated for employees paid on a piece rate

Continuing the trend established by Downtown LA Motors, where employees paid on a piece rate were required to be paid at least the minimum wage for hours spent waiting to perform work, the California Court of Appeals in...more

California Court of Appeal Decision May Signal the End of Piece-Rate Compensation Plans

Many employers pay their employees on a piece-rate basis, meaning employees are paid a set amount based on the tasks they perform rather than the hours they work (e.g., assembly line employee paid $1 for every widget he...more

Employment Law Reporter - May 2013: California Court Holds That Piece Rate Employees Are Entitled To Hourly Pay For Waiting Time

Like many other auto dealerships and other employers throughout the state, Downtown LA Motors, LP (“DLAM”), a Mercedes Benz dealership, compensates its service technicians on a piece rate basis. Under their system,...more

Employment Law Advisory for May 8, 2013: Recent Court Decision Highlights Risks in Piece Rate Compensation Plans

Most non-exempt employees are paid by the hour for their work. California’s Wage Orders permit non-exempt employees also to be paid on a piece rate basis, however, and a recent decision from the California Court of Appeal...more

California Piece-Rate Employees Entitled To Compensation For Each Hour Worked

Gonzalez v. Downtown LA Motors, No. B235292 (April 2, 2013): A California Court of Appeal recently held that automobile service technicians who were paid on a “piece-rate” basis should have been paid their minimum hourly wage...more

"That Can't Be Right!" California Appellate Court Rules that Piece Rate Workers Are Entitled to Separate Hourly Compensation

A California Court of Appeal dealt another blow to employers this month when it held automobile mechanics, who earned at least minimum wage for every hour worked, were entitled to separate hourly compensation for any time not...more

Appellate Court Invalidates Auto Dealership's Method Of Paying Service Technicians

In an unpublished decision, the California 2nd District Court of Appeal held that that piece-rate-paid employees are entitled to separate hourly pay for “waiting” time. The case involved a class of 108 automobile service...more

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