Piece-rate compensation plans have been used for decades in agriculture to incentivize harvest employees to be more productive -- the more they pick, the more money they earn. Federal courts have long upheld such plans as long as the average wage earned is greater than the minimum wage rate. The California Labor Commissioner generally agreed with federal precedent. However, a series of recent state and federal court decisions interpreting California wage laws have put the validity of such compensation plans in doubt. One recent case held that California's minimum wage law required employers who compensate employees on a piece-rate basis are also required to pay those employees a separate hourly wage for all "non-productive" time before, after and in-between the actual piece-rate tasks.
Join Western Growers for a free 60-minute webinar in which Terry O'Connor, Partner at Noland Hamerly Etienne & Hoss, Western Growers Vice President and General Counsel explain how to create lawful incentive compensation plans and steer clear of related legal risks.
In this program, attendees learned:
• Brief history of piece-rate systems
• Recent court decisions analyzing various piece-rate plans
• Recent lawsuits filed against growers alleging unlawful piece-rate plans
• SB 435 -- Pending legislation that would require employers to pay piece-rate workers their average piece-rate wage during breaks.
• Possible solutions to the piece-rate conundrum
Terry O'Connor, Partner, Noland Hamerly Etienne & Hoss
Jason Resnick, Vice President and General Counsel, Western Growers