Piecing together piece-rate work.

Byline: ON THE JOB Bureau of Labor & Industries For The Register-Guard

True or false?

1. The law provides an official definition of the term "piece-rate," but I just haven't been able to find it.

Answer: False. Neither Oregon nor federal wage and hour law defines the term "piece-rate." But in general, it is thought of as paying a certain amount per "unit," such as a dollar for every box of strawberries picked or every garment assembled.

2. If an employer is paying employees on a piece-rate basis, there is no obligation to keep track of their hours or pay them minimum wage or overtime.

Answer: False. There are some industries, such as agriculture, where employees are traditionally paid on a piece-rate basis. It also happens that most agricultural employees are exempt from overtime requirements. But in almost all cases, it is the law (not the fact that they are paid piece-rate) that makes them exempt.

In addition, most agricultural employees still must be paid the equivalent of at least minimum wage ($7.80 per hour) for every hour they work. Even if their employer is paying them by the piece, the employer still must ensure that their working hours are being accurately tracked. And if their piece-rate wages amount to less than minimum wage for the pay period, the employer must supplement their wages so that it reaches this amount.

3. In calculating overtime for piece-rate work, the employer simply adds up the money the employee made in that workweek and divides it by the number of hours worked. The resulting figure is the "regular rate," and the employer must pay time-and-a-half of that rate for all hours worked over 40.

Answer: True. This "weighted average" formula is the same one used in most situations where an employee is paid a variable amount of money during the workweek. (See our Web site for more information and examples of overtime calculations.)

4. If an employer pays a worker on a piece-rate basis and the worker doesn't earn more than a certain amount of money per week, the employer can classify the worker as an independent contractor.

Answer: False. We threw this one in because it seems to be one of those myths that will not go away. While it is true that independent contractors are generally paid when the work is completed, that is not the same thing as being paid by the piece. In general, independent contractors are paid when the whole job is completed, as opposed to piece by piece.

5. If an employer is paying by piece-rate and employees wish to forgo their breaks and meal periods to make more money, it is acceptable for the employer to allow that.

Answer: False. Despite the understandable desire of the employee to earn as much as possible, the employer cannot allow that at the cost of violating Oregon's breaks and meals requirements.

For more information on this and other important information affecting Oregon employers, visit www.oregon.gov/boli/ta or call [phone].