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California piece-rate pay: rest, recovery and nonproductive time
Piece-rate payroll needs more than a production count. Preserve hours and separate pay categories so rest, recovery and other nonproductive time can be reviewed alongside piece earnings.
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General information, not legal or tax advice.
Define the task and retain time detail
DIR defines piece-rate compensation around an ascertainable amount for a completed task or item. Its guidance explains that minimum wage and overtime requirements still apply. Keep task counts and work time together rather than treating a production total as a substitute for the time record.
Sources: DIR - Piece-Rate Compensation Requirements (AB 1513); DIR - AB 1513 FAQs
Calculate rest and recovery compensation separately
DIR says rest and recovery must be paid separately at the higher of the applicable minimum wage or the specified average hourly rate. That average excludes rest/recovery compensation and overtime premiums from the numerator, and rest/recovery time from hours. Have payroll review the components before applying the formula.
Sources: DIR - AB 1513 FAQs
Identify other nonproductive time
The DIR FAQ defines this as employer-controlled time not directly related to the piece-paid activity, excluding rest and recovery. It generally requires separate pay at no less than minimum wage, with a specified alternative for employers paying at least minimum wage hourly for all hours. Confirm the arrangement before deciding what to track.
Sources: DIR - AB 1513 FAQs
Show the separate categories on wage statements
DIR describes separate hours, rates and gross pay for compensable rest/recovery and, unless the stated exception applies, other nonproductive time. Compare the wage statement with the detailed calculation. Use current wage guidance when reviewing the result rather than copying historical dollar amounts from an old illustration.
Sources: DIR - AB 1513 FAQs; DIR - Piece-Rate Compensation Requirements; DLSE FAQ - Paydays
Sources: define the task and retain time detail
Make piece-rate pay components visible
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