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What does federal law generally say about minimum wage when a covered employee is paid by piece rate?

United States — limited federal general information

Published · Reviewed by Ahmad Sulaiman

For employees within 29 U.S.C. § 206(a)(1), the federal minimum-wage provision requires wages of at least $7.25 an hour, except as otherwise provided in that section. A piece-rate arrangement does not remove the need to apply the federal wage rule where it covers the work. [1]

For the federal overtime regular-rate framework, the pieceworker regulation says to add total workweek earnings from piece rates and other stated sources, subject to statutory exclusions, then divide by the hours worked in that week for which the compensation was paid. The related regulation says a workweek stands alone and applies that weekly approach to pieceworkers. [2] [3]

This is a limited federal overview, not a decision about any job or paycheck. It does not determine whether section 206 covers the work, whether an exception or another federal provision applies, what counts as hours or compensation in a particular workweek, or what state or local law requires. To organize a question for qualified review, keep each workweek separate and gather the total pay and hours records for that week.

References

[1] 29 U.S.C. 206 Minimum wage

[2] 29 CFR 778.111 Pieceworker

[3] 29 CFR 778.104 Each workweek stands alone