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California Appeals Court Confirms Constitutionality of Piece-Rate Compensation Statute

In Nisei Farmers League vs. California Labor and Workforce Development Agency, California’s Fifth Appellate District confirmed the constitutional validity of Labor Code section 226.2, a recently enacted law providing that employees paid on a piece-rate basis must be paid at least minimum wage, and must be paid for rest and recovery periods and “other nonproductive time” separate from any piece-rate compensation. Under a piece-rate system, employees are not paid by the hour, but rather based on activities, task or units of production completed. For example, employees are paid by the number of widgets they produce. The goal of the statute was to make sure employers who pay under a piece-rate system also comply with all minimum wage law requirements that apply to hourly workers. More ›

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