Non-Exempt work

We have some assembly work that can be done at home. Previously we have had former employees doing this and they were paid by pieces completed and were given a 1099 at the end of the year.

Now hourly employees are starting to do some of this work. Is there any problem paying them on a piece completed basis for the work they take home or since they are hourly employees do we still have to pay them by the hour for this work?

Do you know of any law or regulation that would prevent us paying them by the piece as long as we pay them through payroll? Any assistance would be appreciated.


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  • Are the employees part time or full time? Do the employees do the same type of work during working hours? You may want to contact your state's Labor Commissioner and give them specifics and have them guide you. Always get the name of the person to whom you speak with.

    I believe you may have issues with overtime. But I'm in California and what you outline in your post would most likely cause overtime.

  • BRANDY: You would still have to keep record of the time worked on the pieces on which you would base a rate of pay and these times must be included within your 40 hour work week.

    We have a particular position (6 total)that is on the clock, but the production of pieces is the way that we pay. As long as, he/they are getting greater than minimum wage we are ok, and when the hours worked on his shift goes over 40 hours the o/t kicks in and both the time worked and the pieces are more valuable. This job could be done at home but not as efficiently as at our work site.

    We would never agree for the job to be done at home, but I feel like the principle is the same.

    The LAW is the FLSA! Any time you have an employee do any work for the benefit of the company the hours worked must be a part of the equation. If an employee wanted to be the night janitor service, the employee would have to prove to me that she/he is a ligitimate janatorial service with a company ID, before I would even consider this employee for an additional duty, after hours, and not employed, but contracted!

    If you can't get to these understandings then never let it happen; I don't care how much money the family needs in order to make the ends meet. If the copany wants to help the employee then let the time collect overtime and be sure to inspect and hold to high standards.

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