• Court Holds That California Minimum Wage Obligation Is Not Met By Averaging All Hours Worked In Pay Period
  • August 15, 2013
  • Law Firm: Rutan Tucker LLP - Costa Mesa Office
  • Employers who pay their non-exempt employees on a piece-rate basis may owe additional wages for time spent performing work that falls outside the piece-rate structure, or for waiting time that is under the employer’s control. The same reasoning may also apply to nonexempt commission pay structures. In Gonzalez v. Downtown LA Motors, LP, 215 Cal. App. 4th 36 (2013), the employer paid automotive technicians on a piece-rate basis for their repair work. The employer did not pay for waiting time or other non-repair work (e.g., cleaning the shop), unless the overall wages fell below the minimum wage for all hours worked. The trial court rejected this pay structure and awarded the technicians more than $1.5 million. The Court of Appeal affirmed, and the California Supreme Court recently denied review, leaving the holding intact.