How to Calculate Piecework Rates
Standard Piecework Plan Calculations (NON-CALIFORNIA INSTRUCTIONS)
The regular rate of pay for an employee paid on a piecework basis is obtained by dividing the total weekly earnings by the total number of hours worked in that week. The employee is entitled to an additional one-half times this regular rate for each hour over 40. Piece rate calculations may not be made at less than minimum wage.
Example: We know the employee is paid $1.50 per piece and they make 210 pieces in 45 hours (weekly payroll) and earns $315. The regular rate of pay for that week is $315 divided by 45, or $7.00 an hour. In addition to the straight-time pay, the employee should also receive $3.50 (half the regular rate) for each hour over 40 — an additional $17.50 for the 5 overtime hours — for a total of $332.50.
Standard Piecework Plan Calculation (CALIFORNIA INSTRUCTIONS)
The regular rate of pay for an employee paid on a piecework basis is obtained by dividing the total daily earnings by the total number of hours worked in that day. The employee is entitled to an additional one-half times this regular rate for each hour over 8 in one day. Piece rate calculations may not be made at less than minimum wage.
Example: We know the employee is paid $1.50 per piece and they make 210 pieces in 45 hours (weekly payroll) and earns $315. The regular rate of pay for that week is $315 divided by 45, or $7.00 an hour. In addition to the straight-time pay, the employee should also receive $3.50 (half the regular rate) for each hour over 8 in one day — an additional $17.50 for the 5 overtime hours — for a total of $332.50.
| *Straight Piecework Plan Rate Per Piece | Pieces Made | Rate Per Piece times Pieces Made | Hours worked in the pay period | OT hours worked in the pay period | Total Rate Per Piece times Pieces Made divided by hours worked equals Hourly Rate | Hourly Rate divided by 2 for purposes of calculating OT premium | OT hours worked times OT Premium (half of hourly rate) | Total pay for the week |
| $ 1.50 | 320 | $ 480.00 | 40 | 0 | $ 12.00 | $ 6.00 | $ - | $ 480.00 |
| $ 1.50 | 320 | $ 480.00 | 45 | 5 | $ 10.67 | $ 5.33 | $ 26.67 | $ 506.67 |
| $ 1.50 | 210 | $ 315.00 | 45 | 5 | $ 7.00 | $ 3.50 | $ 17.50 | $ 332.50 |
*There are variations of piecework plans that included an added bonus for exceeding a specific standard, however the above plan demonstrates a Standard Piecework Plan.
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