California Auto Dealers: Re-Check Your Pay Plans And Wage Statements Before January 1, 2016
On October 10, 2015, Governor Jerry Brown signed AB 1513 into law creating a new California Labor Code § 226.2 (effective January 1, 2016), which rewrites and redefines the rules governing piece-rate compensation in California.
Section 226.2 codifies the California Courts of Appeal decisions in Gonzalez v. Downtown LA Motors, 215 Cal.App.4th 36 (2013) and Bluford v. Safeway Stores, Inc., 216 Cal.App.4th 864 (2013) and answers some important questions left open by these decisions. Although primarily negotiated by agricultural interests, section 226.2 applies to all piece-rate compensation plans, including the auto industry. Therefore, auto dealers paying on a piece-rate basis must:
Separately compensate employees for time spent taking rest breaks
The compensation for rest and recovery...
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