Employers May not Average Piece-Rate Compensation to Satisfy Requirements of Minimum Wage Laws

Employers May not Average Piece-Rate Compensation to Satisfy Requirements of Minimum Wage Laws

Question:

I work as an auto mechanic (or automotive service technician) at a local auto dealership in California. My compensation is based on a piece-rate system. In other words, I am paid at a “flag-hour” rate of $25 for specific automotive repair projects.  However, I do not receive any compensation for waiting time between the projects or other minor non-repair assignments.

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Q&A: Everything You Need to Know About California Split Shift Laws

Q&A: Everything You Need to Know About California Split Shift Laws

Over the last decade, California employers have witnessed a state-wide increase in wage-and-hour lawsuits filed in state and federal courts.  Employers’ failure to pay split-shift premiums is often alleged as a cause of action.  This post is written in a Q&A form to provide employers and employees with brief guidelines on how California split-shift law works. Keep in mind that these rules apply only to hourly non-exempt employees.  

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Is it legal to pay California drivers a flat rate pay?

Is it legal to pay California drivers a flat rate pay?

In establishing their payroll policies and procedures, many California transportation industry employers often have to decide whether they should pay the drivers an hourly rate or flat rate compensation. While both types of payments are legal under California and Federal wage-and-hour laws, employers must be particularly careful when drivers are paid on a flat fee basis (or “piece rate”).

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The Top Four Reasons Why Employers Should Keep Employment Records

The Top Four Reasons Why Employers Should Keep Employment Records

If I were to give a single legal advice to any employer who wants to comply with wage-and-hour laws, it would be: “Keep accurate employment records for all workers!” During the last few years, California employers have witnessed a drastic increase in wage-and-hour litigation.

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