CSLB Law & Business ExamEmployment RequirementsHard
A piece-rate flooring installer earns $760 in piece-rate wages during a 40-hour workweek, of which 2 hours were spent on legally required rest breaks (not producing flooring). The remaining 38 hours were spent actively installing flooring. Under Labor Code Section 226.2, what is the correct additional rest break compensation owed to the employee for that week?
- A$76.00
- B$40.00
- C$0, because rest breaks are already included in the piece-rate earnings
- D$20.00
Show answer & explanationAnswer & explanation
Correct answer: B. $40.00
Under Labor Code 226.2, piece-rate employees must be paid separately for rest and recovery periods at no less than the average hourly rate for the workweek, calculated by dividing total piece-rate earnings by hours spent in piece-rate-generating activity. Here, $760 ÷ 38 hours = $20.00 average hourly rate. Multiplying by 2 rest-break hours gives $20.00 × 2 = $40.00 owed in addition to the piece-rate earnings.
Why the other options are wrong
- A. $76.00 incorrectly uses 10% of piece-rate earnings rather than the proper average hourly rate calculation.
- C. California law specifically requires separate compensation for rest breaks under a piece-rate system; it is not automatically included.
- D. $20.00 reflects the hourly rate itself, not the total owed for two hours of rest breaks.
Piece-Rate Rest & Recovery Pay
Labor Code 226.2 requires piece-rate employees to be paid separately for rest and recovery periods based on their average hourly rate for the workweek, excluding overtime premiums.
- Average hourly rate = piece-rate earnings ÷ hours actually producing
- Rest/recovery time must be paid separately from piece-rate earnings
- Applies specifically to piece-rate compensation systems
- Failure to pay separately can result in wage claims and penalties
Memory trick: Rest time rides on the average rate, not the piece rate.