Section 226.2 Of Article 1. General Occupations From California Labor Code >> Division 2. >> Part 1. >> Chapter 1. >> Article 1.
226.2
. This section shall apply for employees who are compensated
on a piece-rate basis for any work performed during a pay period.
This section shall not be construed to limit or alter minimum wage or
overtime compensation requirements, or the obligation to compensate
employees for all hours worked under any other statute or local
ordinance. For the purposes of this section, "applicable minimum wage"
means the highest of the federal, state, or local minimum wage that
is applicable to the employment, and "other nonproductive time" means
time under the employer's control, exclusive of rest and recovery
periods, that is not directly related to the activity being
compensated on a piece-rate basis.
(a) For employees compensated on a piece-rate basis during a pay
period, the following shall apply for that pay period:
(1) Employees shall be compensated for rest and recovery periods
and other nonproductive time separate from any piece-rate
compensation.
(2) The itemized statement required by subdivision (a) of Section
226 shall, in addition to the other items specified in that
subdivision, separately state the following, to which the provisions
of Section 226 shall also be applicable:
(A) The total hours of compensable rest and recovery periods, the
rate of compensation, and the gross wages paid for those periods
during the pay period.
(B) Except for employers paying compensation for other
nonproductive time in accordance with paragraph (7), the total hours
of other nonproductive time, as determined under paragraph (5), the
rate of compensation, and the gross wages paid for that time during
the pay period.
(3) (A) Employees shall be compensated for rest and recovery
periods at a regular hourly rate that is no less than the higher of:
(i) An average hourly rate determined by dividing the total
compensation for the workweek, exclusive of compensation for rest and
recovery periods and any premium compensation for overtime, by the
total hours worked during the workweek, exclusive of rest and
recovery periods.
(ii) The applicable minimum wage.
(B) For employers who pay on a semimonthly basis, employees shall
be compensated at least at the applicable minimum wage rate for the
rest and recovery periods together with other wages for the payroll
period during which the rest and recovery periods occurred. Any
additional compensation required for those employees pursuant to
clause (i) of subparagraph (A) is payable no later than the payday
for the next regular payroll period.
(4) Employees shall be compensated for other nonproductive time at
an hourly rate that is no less than the applicable minimum wage.
(5) The amount of other nonproductive time may be determined
either through actual records or the employer's reasonable estimates,
whether for a group of employees or for a particular employee, of
other nonproductive time worked during the pay period.
(6) An employer who is found to have made a good faith error in
determining the total or estimated amount of other nonproductive time
worked during the pay period shall remain liable for the payment of
compensation for all hours worked in other nonproductive time, but
shall not be liable for statutory civil penalties, including, but not
limited to, penalties under Section 226.3, or liquidated damages
based solely on that error, provided that both of the following are
true:
(A) The employer has provided the wage statement information
required by subparagraph (B) of paragraph (2) and paid the
compensation due for the amount of other nonproductive time
determined by the employer in accordance with the requirements of
paragraphs (4) and (5).
(B) The total compensation paid for any day in the pay period is
no less than what is due under the applicable minimum wage and any
required overtime compensation.
(7) An employer who, in addition to paying any piece-rate
compensation, pays an hourly rate of at least the applicable minimum
wage for all hours worked, shall be deemed in compliance with
paragraph (4).
(b) This section shall become operative on January 1, 2021.