Piece Rate Pay

Piece rate pay is based on completing a particular task or making a particular piece of goods.¹ It is a method of payment based on units of production, instead of actual time worked.

Some employers pay piece rate to establish an incentive system. Piece rate systems tend to be used in the agriculture, manufacturing, automotive-repair and truck-driving industries, but other industries use it as well.

All requirements that apply to hourly employees also apply to piece rate employees.

Exclamation content: At the end of the payroll period, an employee paid on a piece rate basis must receive at²