Summary: Many employees who are paid on a piece rate basis are not aware that they are entitled to overtime. An attorney can help you understand your overtime rights. Complete our contact form to request your free review.
Piece rate workers are employees who are paid for the number of tasks or units they complete. In other words, a piece rate worker is paid according to how much work they perform rather than on a traditional hourly or salaried basis.
While piece rate compensation structures can be very lucrative for workers, some employers may try to claim that employees compensated this way are not entitled to overtime pay. An experienced unpaid overtime attorney can explain your legal rights if you are a piece rate worker and your employer is withholding overtime wages.
Understanding the Overtime Laws for Piece Rate Workers
Workers across a variety of industries may be paid on a piece rate basis, such as:
- Nurses
- Technicians
- Factory workers
- Automobile mechanics
- Construction workers
For example, nurses may be paid piece rate compensation that is based on the number of patients they visit or procedures they perform. Assuming an employer is adhering to all labor laws outlined by the Fair Labor Standards Act (FLSA), piece rate compensation is completely legal and can enhance employee productivity.
Federal law does require employers to pay piece rate workers for overtime. Piece rate workers are entitled to overtime whenever they work more than 40 hours per workweek. Overtime pay should be one and a half times the worker’s regular hourly wage.
Companies that pay employees on a piece rate basis should also ensure that workers are compensated for nonproductive time that conforms with the state or federal minimum wage (whichever is higher). Additionally, piece rate workers should be compensated for rest breaks. Failure to follow these and other wage requirements can result in overtime violations that rob piece rate workers out of compensation they are rightfully entitled to receive.
Calculating Overtime Wages for Piece Rate Workers
Piece rate pay is not a substitute for overtime. Sometimes, employers will use the piece rate compensation model to avoid paying overtime wages altogether. Overtime pay for piece rate employees is calculated by:
- Dividing the employee’s weekly earnings by the number of hours worked
- Multiplying that by the overtime rate
- Multiplying that number by the number of overtime hours completed
If you are being paid by the piece but are not receiving overtime or the minimum wage, you should consider contacting an attorney about obtaining legal representation. You may be eligible to file a piece rate wage claim for compensation if your employer has purposefully misclassified you to avoid overtime obligations. It is also illegal if your company fails to compensate you for the nonproductive time when you are still under the company’s control and prevents you from taking rest periods.
All of these actions can impact the calculation of overtime hours you are owed, leading to wrongful withholding of overtime wages. While calculating piece rate pay for overtime purposes can be complicated, a qualified lawyer can provide further clarity if you think your employer might be neglecting to pay full wages. A successful claim could help you collect backpay, liquidated (double) damages, interest, and more.
Call a Piece Rate Overtime Attorney Today
Covered non-exempt employees who are compensated under a piece rate payment structure must be paid overtime as a matter of federal law. Piece rate workers who are denied overtime wages may be entitled to significant compensation.
An attorney can advocate on your behalf for the backpay you are owed while fighting to ensure that your employer is held accountable for illegal payment practices. If you would like to get more information, please submit your information through the intake form or chat box to request your free and confidential review. We take cases on a contingency basis, meaning you don’t pay anything unless we win.