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.

Many employers pay piece rate to establish an incentive system. The agriculture, manufacturing, automotive-repair and truck-driving industries commonly use the piece rate compensation system, but other industries use it as well.

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

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