On January 1, 2016 California business owners face a host of new laws that go into effect on the first day of the New Year (such as the Fair Pay act, more on that here). One of them is AB 1513, which creates a new California Labor Code § 226.2 and rewrites and redefines the rules governing piece-rate compensation in California. Employees who are paid piece rates and commission payments are paid by results instead of getting an hourly or weekly pay rate. In other words, what a “piece rate” employee earns each week will vary depending on how much work they do. One of the largest industries in California affected by this new law is the automotive industry, though any business with piece rate employees on the payroll must take this new law into consideration.
Auto dealers and all employers paying employees on a piece-rate basis must:Details