How does piece rate compensation law apply to employees who work on a commission basis?

Piece rate compensation does not apply to employees who are compensated on a commission basis. 

By its terms, Labor Code section 226.2 applies only to “employees who are compensated on a piece-rate basis for any work performed during a pay period.”
Note, however, that it is the nature of the compensation that is determinative, not the label. Also note that while section 226.2 applies only to piece-rate employees, the court in Vaquero v. Stoneledge Furniture LLC, 9 Cal.App.5th 98 (2017), found that similar pay requirements apply to commission employees, including the right to be compensated separately for required rest breaks. For a detailed discussion of commissions, see the Division of Labor Standards Enforcement Manual, Section 34.


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