A contractor employs several workers who are paid on a piece-rate basis for installing flooring. In addition to their piece-rate earnings, these employees are entitled to separate compensation for rest and recovery periods. How should this compensation be calculated?
- AAt 1.5 times the employee's average hourly rate for the pay period, including piece-rate earnings.
- BAt the California state minimum wage, regardless of the employee's piece-rate earnings.
- CAt the employee's regular hourly rate, which is determined by dividing the total weekly compensation (excluding rest/recovery pay) by the total hours worked (excluding rest/recovery time), or the applicable minimum wage, whichever is greater.
- DAt the employee's average hourly rate for the pay period, excluding piece-rate earnings.
Show answer & explanationAnswer & explanation
Correct answer: C. At the employee's regular hourly rate, which is determined by dividing the total weekly compensation (excluding rest/recovery pay) by the total hours worked (excluding rest/recovery time), or the applicable minimum wage, whichever is greater.
California law requires that non-productive time, including rest and recovery periods, for piece-rate employees be compensated at a specific regular hourly rate, or the applicable minimum wage, whichever is greater. This rate is calculated based on the employee's total compensation and hours worked during the workweek.
Why the other options are wrong
- A. This option describes an overtime rate, not the standard rate for rest and recovery periods for piece-rate employees.
- B. While minimum wage is a floor, the compensation for rest and recovery must be at the employee's regular rate if it's higher than minimum wage.
- D. This option incorrectly excludes piece-rate earnings from the average hourly rate calculation, which should be included for determining the regular rate.
Piece-Rate Rest & Recovery Pay
In California, employees paid on a piece-rate basis must receive separate compensation for rest and recovery periods, paid at their regular hourly rate or the applicable minimum wage, whichever is higher.
- Applies to piece-rate employees.
- Covers rest and recovery periods, and other non-productive time.
- Calculated at regular rate of pay or minimum wage, whichever is greater.
Memory trick: Piece-rate workers earn for each piece, but their breaks need a fair 'regular' peace.