Following recent cases, review piece-rate pay & commissions

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in Compensation and Benefits,Human Resources

by Robert A. Jones, Esq., Ogletree Deakins, San Francisco

In April 2013, a California Court of Appeal decided how automobile service technicians should be paid while waiting between jobs. The court held that the technicians, who were paid on a “piece-rate” basis, must also be paid at least the minimum hourly wage for the time that they are required to wait between their piece-rate-paid repair jobs.

On July 19, the California Supreme Court refused to review the appeal court ruling, making it binding law.

The case—Gonzalez v. Downtown LA Motors, LP (No. B235292, Court of Appeal of California, 2nd Appel­­late District, 2013)—has important implications for California employers that pay on other than an hourly basis.

In its ruling, the Court of Appeal noted that California law requires em­­ployees to be paid “not less than the applicable minimum wage for all hours worked in the payroll period, whether the remuneration is measured...(register to read more)

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