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ARTICLE · 16 JULY 2012

Quick Quiz Answer: Piece-Rate Pay Under The FLSA

The correct answer to our July 1 Quick Quiz is "$25".

United StatesEmployment and HR

The correct answer to our July 1 Quick Quiz is "$25".  The results were:

"$54.38":  (4 Votes, 7.1%)

"$60":  (18 Votes, 32.1%)

"None, because she is paid at a piece-rate.":  (19 Votes, 33.9%)

"$25":  (12 Votes, 21.4%)

"$20":  (3 Votes, 5.4%)

One point we wanted to illustrate is that an employee is not exempted from the federal Fair Labor Standards Act's overtime-compensation requirements just because he or she is paid at a piece-rate.

The key to the correct response lies in properly determining Anne's "regular rate" of pay for purposes of calculating the FLSA overtime compensation she is due.  The FLSA regular rate for a particular workweek is figured by dividing the employee's total compensation for that workweek by the total number of hours worked in that workweek for which the compensation was paid.  See, e.g., 29 C.F.R. §§ 778.109, 778.111.

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