Category: Employment Law

What is Piece Rate Compensation?

Posted On December 1, 2016 In Employment Law

In certain industries it is common for employers to pay workers on a “piece-rate” basis instead of by the hour. Unfortunately, certain employers use a piece-rate compensation basis in order to attempt to underpay their workers. Essentially, anyone who is being paid on a piece-rate pay system is being paid a set price for each unit of a product that they make, and the more they produce the more they earn.

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