EmploymentQuestion 684 of 690

A contractor pays drywall hangers on a piece-rate basis (per linear foot installed). Under Labor Code §226.2, the contractor must separately pay piece-rate workers for:

a.Rest and recovery periods AND 'other nonproductive time' (time under the employer's control not directly compensated by the piece rate, e.g., loading materials, attending meetings), at no less than the higher of the applicable minimum wage or the worker's average hourly rate (excluding rest periods) for the workweek
b.Only the piece-rate work; rest periods are deemed included in the piece rate
c.Only meal periods, which must be paid at double the piece rate
d.Travel time only, at one-half the minimum wage

Explanation

Labor Code §226.2 (effective 2016) requires piece-rate employees to be paid SEPARATELY and IN ADDITION to piece-rate earnings for: (1) rest and recovery periods, compensated at the higher of the applicable minimum wage or the worker's 'average hourly rate' (total nonpiece earnings excluding rest/recovery divided by total hours worked excluding rest/recovery), and (2) 'other nonproductive time' under employer control, paid at no less than minimum wage. Wage statements must show these amounts as separate line items. The other options misstate the rule. Many California construction-piece-rate cases produced large class settlements before §226.2 was clarified.

Law Reference: Labor Code §226.2

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