Skip to main content
Back to Ask Atlas questions

Ask Atlas · History and policy

Under a limited federal overview, does being paid by piece rate automatically show that an employer must add pay?

United States — limited federal general information

Published · Reviewed by Ahmad Sulaiman

Not from the payment method alone. The official U.S. Code page states that, through October 7, 2026, 29 U.S.C. § 206(a) requires the covered employees it describes to be paid a rate of not less than $7.25 an hour, except as the section otherwise provides; an eCFR recordkeeping rule displayed current through October 22 recognizes “per piece” as one basis of pay, but neither source decides a particular employer’s obligation. [1] [2]

An eCFR regulation displayed current through October 22 says that, in some cases, a piece-rate employee is hired with a minimum hourly guarantee and is paid the difference when weekly piece-rate earnings fall short; it addresses regular-rate and overtime concepts and does not decide a person’s separate minimum-wage obligation or entitlement. [3]

Sources

  1. [1] 29 U.S.C. 206 Minimum wage official statutory text
  2. [2] 29 CFR 516.2 federal recordkeeping regulation
  3. [3] 29 CFR 778.111 pieceworker regulation