New Law Creates Additional Rest and Recovery Requirements for Piece-Rate Workers

Effective January 1, 2016, Assembly Bill 1513 establishes Labor Code Section 226.2, which requires that employers paying piece-rate compensation must pay employees for rest and recovery periods and other nonproductive time separately from any piece-rate compensation, and that wage statements reflect these payments. The hourly rate paid for rest and recovery periods must be the greater of the applicable minimum wage, or the employee’s average hourly wage for all time worked excluding rest and recovery periods or overtime, and the rate paid for other nonproductive time must be at least the applicable minimum wage. Employers are provided a limited safe harbor for certain claims filed on or after March 1, 2014 for uncompensated rest and recovery periods or other nonproductive time, provided payments are made in accordance with the new requirements by December 15, 2016.

AB 1513 also requires that employee wage statements include the total hours of paid rest and recovery periods, the rate paid for these periods and gross wages paid during the pay period, and the total of all other nonproductive time, the rate of compensation for that time, and gross wages paid for the pay period.

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