QUESTION

Can an employer manipulate your hours and add hours to a person working piece rate causing their rate to drop below the previously earned rate?

Asked on May 27th, 2015 on Employment Contracts - Pennsylvania
More details to this question:
if i worked 25 hours scheduled piece rate work, while the rest of the time i worked in-direct which is only paid 7.75 an hour. i scan material into the system during time i am on production. upon receiving my pay stub i noticed that i had been given exactly 40 hours of production time. the extra 15 hours that i was clocked in in direct that were changed to production caused me to drop below rate costing me more than $2.00 an hour for the 25 hours worked, this has been done to me several times. this most recent time i was promised by my supervisor who informed me that i was to be paid my rate for piece rate during my in-direct time, because i respectfully declined to go in- direct and make less money an hour. once again 40 hours @7.75 an hour. how can this be when im not putting 40 hours of production time into it?
Report Abuse

1 ANSWER

Business Law Attorney serving Pittsburgh, PA at Fiffik Law Group, P.C.
Update Your Profile
Employees paid on a piece-rate basis are not exempt from the various requirements of the Fair Labor Standards Act ("Act"), including minimum wage and overtime.  Piece¿rate is not a new or novel compensation technique; however, in recent years, the U.S. Department of Labor has dedicated substantial resources to investigating, penalizing, and prosecuting employers who misuse the piece¿rate system.  Even under a piece¿rate compensation scheme, employers must pay employees at least the applicable minimum wage for each hour of work (currently, $7.25 per hour).  This does not mean that employers are required to pay a certain rate per piece; rather, employers must ensure that at the conclusion of each workweek, all nonexempt employees have received at least $7.25 for each hour of work performed during the workweek.  It might be that the amount you earned at the piece rate was not sufficient to pay you at minimum wage for those hours and the employer had to adjust your pay so that you received at least minimum wage for that work week.  I don't think I have quite enough information to assess exactly what happened and whether you were paid correctly.   Now if you're saying that you worked over 40 hours that week between production and in-direct time, you are entitled to overtime.  Under the Act, irrespective of whether the employee is paid hourly or on a piece¿rate basis, the employer must pay the employee one and one¿half times the employee's regular rate of pay for all hours worked in excess of 40 hours in a workweek. Again, I'm not sure of the facts.  Sorry I can't be more specific.    
Answered on May 30th, 2015 at 4:26 AM

Report Abuse

Ask a Lawyer

Consumers can use this platform to pose legal questions to real lawyers and receive free insights.

Participating legal professionals get the opportunity to speak directly with people who may need their services, as well as enhance their standing in the Lawyers.com community.

0 out of 150 characters