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ARTICLE · 03 DECEMBER 2015

Changes To California's Piece-Rate Compensation Requirements

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Assembly Bill 1513, will significantly change the requirements governing the payment of piece-rate compensation in California beginning January 1, 2016.

United StatesEmployment and HR

Assembly Bill 1513, will significantly change the requirements governing the payment of piece-rate compensation in California beginning January 1, 2016.  AB 1513 creates Labor Code section 226.2 which sets forth requirements for the payment of a separate hourly wage for rest and recovery periods and for "other nonproductive time" worked by piece-rate employees.  AB 1513 defines "other nonproductive time" as "time under the employer's control, exclusive of rest and recovery periods, that is not directly related to the activity being compensated on a piece-rate basis."

Calculating Compensation Under AB 1513

The compensation provisions of AB 1513 require employers to separately compensate rest and recovery time and "other nonproductive time" as follows:

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