|Feb. 20, 2017 | www.fisherphillips.com|
(California Wage/Hour Update, No. 1, January 2014)
As the new year begins, California employers, already weary from added wage and hour laws and regulations enacted over the past several years, have yet more to comply with. Here are the highlights.
Piece-Rate Or Incentive Agreements
Historically, both California and federal law have provided considerable leeway to compensation agreements between employers and employees so long as the minimum wage has been satisfied based on total hours worked and compensation paid. Indeed, the historical view has been that “straight-time wages above the minimum wage are a matter of private contract between the employee and the employer.” Schachter v. City Group, Inc. But this principle as applied to California law continues to be eroded as state and federal courts have interpreted California law to prohibit averaging a piece rate for productive work to include periods on the clock when piece rates are not being produced. See, e.g., Gonzalez v. Downtown LA Motors.