On October 10, 2015 Governor Brown signed AB1513 into
law. The modifications to employment law
that AB1513 made deal with workers’ compensation and piece-rate
compensation. This post addresses the
latter.
A few industry associations asked a law firm to provide
an opinion of the new law as it relates to piece-rate compensation. The law firm did an excellent job addressing
the various points of the new law. You can view their memorandum here. Their memorandum outlines the “safe harbor”
provisions contractors will need to comply with, by December 15, 2016, in order to avoid fines and
penalties. The changes required by the new law may prove costly for contractors
whom have historically compensated their workers on a piece-rate basis. At a minimum, changes to how these contractors compensate their employees in California appear to be on the way.
A significant element of the changes have to do with contractors being
required to pay workers for rest and recovery periods and other non-productive
time. The administrative requirements
being imposed by this new law all but assure the demise of piece-rate pay, at
least as it has been known historically.
If you have been compensating workers on a piece-rate basis and you want
your voice to be heard regarding these changes, I suggest either connecting
with an industry association (as referenced in the memo linked above) or contacting
your local state representative directly.
In the meantime, you need to become aware of the issues and requirements
surrounding the new law and act accordingly.
