California Enacts an Increase in Piece-Rate Worker Compensation, with Retroactive Repercussions for Resolving Back Wage Claims Without Litigation
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APPLIES TO All California Employers who Employ Piece-Rate Employees |
EFFECTIVE January 1, 2016 |
QUESTIONS? Contact HR On-Call (888) 378-2456 |
On October 10, 2015, Gov. Brown signed AB 1513 into law, adding Section 226.2 to the California Labor Code. This legislation is a response to prior court rulings related to required compensation for mandated breaks and other nonproductive time. Specifically, the bill sets forth minimum compensation requirements for rest and recovery periods and other nonproductive time for piece-rate workers, in addition to and separate from their established piece rates. Each type of compensation must also be documented on an employee’s paystub. Additionally, employers who have not been paying piece-workers for this additional time have the opportunity to resolve back claims without litigation. This statute will become effective on January 1, 2016, but will have retroactive repercussions for wages earned as of July 1, 2012.
This information applies to all companies who employ piece-rate workers in California. Examples of employees who are compensated as piece-rate workers include, but are not limited to, those who may do installation work, closing financial transactions when paid a flat rate, agricultural work, manufacturing work, logistics work when a piece rate applies to drivers’ deliveries, etc.