Piece-rate pay compensates workers a fixed amount for each item of work completed per day or week. Although there are advantages to piece-rate compensation, such as incentivizing workers to be more efficient and productive, employers that use this method must still comply with the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA).

In her most recent HR Laws article, Jill Chasson recommends keeping an accurate record of daily and weekly hours worked so piece-rate pay can be supplemented if a worker exceeds 40 hours of work in a week. Jill highlighted an example of how costly failure to pay overtime can be. An Arizona construction company that did not pay overtime to its piece-rate workers or keep accurate time records was investigated by the US Department of Labor and ultimately ordered by a federal court to pay more than $725,000 in back overtime, damages, and penalties.

Well-versed in the many federal and state laws that govern the workplace, Jill regularly works with employers to develop workplace policies, resolve difficult personnel issues, and provide guidance regarding compliance with wage and hour laws. When disputes arise, she represents employers before administrative agencies, in arbitration proceedings, and court litigation regarding a variety of employment-related claims.

Read the full commentary here.