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.
This premium content is for our members. For immediate access, join online or by phone at (800) 649-4921. Or Start a Free Trial Now for 7 days.
Already a Member? Sign In Below.
