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elaws - employment laws assistance for workers and small businesses - FLSA Section 14(c) Advisor

Determining the Commensurate Wage when Paying a Piece Rate Under FLSA Section 14(c)

A piece rate is the amount of money paid per task performed or piece produced. A piece rate used to determine the commensurate wages, when properly established, must include consideration of quantity and quality of production and an allowance factor covering personal time, fatigue and delay (PF&D).

A proper piece rate, when multiplied by the standard of the worker who does not have a disability, must equal at least the prevailing wage rate.

To establish a piece rate, the employer must evaluate the productivity, in terms of quantity and quality, of workers who do not have disabilities producing the identical product that the workers with disabilities will be producing. Detailed guidance on how to conduct this evaluation is contained in Conducting Work Measurements of Jobs that will be Paid a Piece Rate under FLSA Section 14(c)

For more detailed information about particular aspects of establishing piece rates, please select one of the following:

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FLSA Section 14(c) Advisor | Wage and Hour Division