Piece rate: How are the back pay requirements being monitored and enforced?

Under the terms of the statute, the employer has an affirmative defense to certain claims if the employer complies with “all of” the obligations set forth in the statute. The Department of Industrial Relations is not authorized to supervise or oversee these payments, and will not issue any approvals or certifications that an employer has or has not followed the process correctly.

Whether the employer met the requirements for the affirmative defense may arise in any dispute over piece-rate compensation, either in litigation or in the context of a wage claim. In the event of such a dispute, it will be up to the person hearing the dispute (i.e., the judge, hearing officer, or arbitrator) to decide whether the employer performed all of the obligations set forth in the statute in order to obtain the affirmative defense in that particular case.

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