This section describes how to configure pay rules in Dayforce to help your organization comply with California Piece-Rate Compensation legislation, which requires employees compensated on a piece-rate basis to be compensated for rest and recovery periods and other non-productive time during their shifts. This appendix is designed to help you understand the specific tasks you need to perform to implement functionality for California Piece-Rate Compensation.
According to the legislation, employers are required to record rest breaks and provide employees with an itemized wage statement that includes the following information:
- The total hours of rest and recovery periods, the rate of compensation, and the gross wages paid for such time during the pay period.
- The total hours of other non-productive time, the rate of compensation, and the gross wages paid for such time during the pay period.
- Note: “Other non-productive time” is defined as time under the employer’s control, exclusive of rest and recovery periods, that isn’t directly related to the activity being compensated for on a piece-rate basis.
The legislation also requires that employers determine the rate of compensation for rest and recovery periods based on the higher of the following:
- The average hourly rate, determined by dividing the total compensation for the workweek (exclusive of compensation for rest and recovery periods) and any premium compensation for overtime, by the total hours worked during the workweek (exclusive of rest and recovery periods).
- The applicable minimum wage.
At a high-level, the process for configuring California Piece-Rate compensation in Dayforce is as follows:
- Configure the Piece Rate Rule to specify the rate that is paid for eligible rest and recovery periods.
- Configure the Premium Rule to specify the premium that is paid for rest and recovery periods.
- Configure the Assign Pay Code Rule to change the pay code for rest and recovery periods to one that is paid at the rate calculated by the Piece Rate Rule.
- Configure the Average Rate to Premiums at Week End Rule to apply the piece rate calculated by the Piece Rate Rule to the rest period premium.
The components of these larger steps are covered in detail in this guide.
Note: For details about the legislation itself, see the Government of California’s website: http://www.dir.ca.gov/pieceratebackpayelection/AB_1513_FAQs.htm