Piece Rate/Per Unit Basis & Minimum Wage

Where employees are paid on a piece rate or any other method not tied to the hours actually worked, the issue becomes whether the payment satisfies minimum wages. An employer can’t avoid the minimum wage by paying an employee per widget produced.

California workers must receive the minimum wage for each hour worked during the payroll period, even if the agreed upon compensation exceeds the minimum wage for the total hours worked. Thus, you can be paid on a piece rate basis, but it must exceed minimum wage.

Branigan Robertson is experienced at litigating against companies who abuse the piece rate compensation structure. Remember, you must get paid minimum wage for each and every hour worked! In Orange County, as it is throughout California, employers cannot average an employees hours and earning over the course of the week or two-week pay period to meet its minimum wage obligations. It must pay you minimum wage for each and every hour worked.