Do I have to pay additional wages for a rest break if we pay our employees by piece rate?
HRCalifornia
Yes. Employers must separately pay piece-rate employees for rest and recovery periods.
Rest breaks must be paid at an hourly rate no less than the higher of:
- The average hourly rate; or
- The applicable minimum wage (local, state or federal).
The average hourly rate is calculated by dividing total weekly compensation (excluding rest period and overtime premium pay) by total hours worked (excluding rest periods).
For example:
- An employee works 40 hours in a week and earns $700 in piece-rate compensation.
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