Technician pay plan complied with minimum wage and paid rest break requirements
By now employers know that rest breaks must be paid and if an employee is paid on a piece-rate basis, the rest break must be compensated at the higher of minimum wage, or their average hourly rate for the workweek. In Certified Tire and Service Centers Wage and Hour Cases, Plaintiffs sued their employer, Certified Tire, claiming that their pay plan was an “activity-based” pay system and did not separately compensate them for non-productive time and rest periods because it allowed them to earn a higher hourly rate based on production. They argued that because they could not increase their hourly rate while working on certain activities or taking rest breaks, this time was unpaid. The employees claimed Certified Tire had wrongly averaged their earnings to contend they were being paid minimum wage for all hours worked, such as in Armenta v. Osmose, Inc.
