Understanding Piece-Rate Wage Violations

Paid by the Piece Not by the Law That’s a Problem

Getting paid by the piece might sound simple. You finish a task, you get paid. But when your paycheck doesn’t match the time you actually spent working, something’s off, and it’s often illegal. Whether you’re building, picking, packing, or repairing, you deserve to be paid fairly for every hour you’re on the job.

At Horn Wright, LLP, our employment law attorneys work with New Yorkers who’ve been shortchanged through shady piece-rate systems. We’ve seen what happens when employers twist the rules to save a buck. If you’ve been rushing through jobs, skipping breaks, or working late just to make ends meet, you may have a wage violation claim on your hands.

What Piece-Rate Pay Is and Where It Is Used in New York

Piece-rate pay means workers are paid a fixed amount for each unit of work completed, like $1 per box packed or $25 per car part installed. This system can be found in industries like agriculture, auto repair, construction, and even dry cleaning.

In New York, piece-rate pay isn’t illegal by itself. But it becomes a problem when the total compensation ends up below the required hourly minimum. According to New York Labor Law §652 and accompanying wage orders, every worker, regardless of how they’re paid, must earn at least the minimum wage for every hour worked.

Federal protections under the Fair Labor Standards Act (FLSA), 29 U.S.C. § 206, say the same. Employers must track hours worked and ensure the total pay averages out to meet or exceed the minimum wage. If it doesn’t, the piece-rate system violates the law.

When Piece-Rate Pay Violates Minimum Wage or Overtime Laws

Many workers under piece-rate systems find themselves working long hours only to end up earning far less than the legal hourly minimum. That’s a major problem.

Both the FLSA and New York Labor Law require that:

• The average hourly rate must meet or exceed minimum wage (currently $16.00 in NYC, $15.00 in other parts of the state)
• Overtime pay must kick in after 40 hours per week, regardless of the payment method
• Employers must keep accurate records of hours worked—not just how many units were completed

If you worked 50 hours one week and your total pay came out to less than time-and-a-half for anything over 40, your employer broke the law. And if they’re not tracking your time at all? That’s another violation under Labor Law §195(4).

Why Employers Use It to Avoid Paying Fairly

Piece-rate pay benefits employers who want to increase productivity while minimizing labor costs. They can encourage speed, shift risk onto the worker, and skip the overhead of paying hourly wages or overtime. But in doing so, they often violate state and federal laws.

Employers may:

• Avoid tracking hours worked entirely
• Deny overtime by arguing you “chose to work longer”
• Set production quotas that are unrealistic for the legal workday

Under FLSA §211(c) and New York Labor Law §661, employers must maintain accurate records of both hours and earnings. Piece-rate setups often break that requirement, and you shouldn’t be penalized for their recordkeeping failures.

Industries at Highest Risk: Construction, Agriculture, Auto Repair

Piece-rate systems are more common in industries where tasks are easily measured—but that doesn’t make them fair. In fact, these fields see some of the worst abuse when it comes to underpayment:

• Construction: Workers paid per tile laid or panel installed often work long days without overtime.
• Agriculture: Farm laborers are paid per bushel or bucket, even when it takes 12-hour shifts to finish the job.
• Auto Repair: Mechanics get paid per job or “flag hours,” regardless of how long the repair actually takes.

Each of these industries falls under unique wage orders in New York. But no matter the field, employers are still required to comply with minimum wage and overtime laws. Labor Law §190 and the associated wage orders make it clear: piece-rate is not a free pass to underpay.

How to Determine Whether Your Pay Structure Is Legal

The key question isn’t what you’re paid per unit. It’s how your total pay stacks up against the time you actually worked.

Ask yourself:

• Do you know how many hours you worked last week?
• Did your total pay meet or exceed minimum wage for those hours?
• Were you paid overtime if you went over 40 hours?

If the answer to any of these is “no,” your employer may be violating both state and federal law. The burden is on them to track time and prove compliance. You don’t have to accept vague pay stubs or excuses. The law requires transparency, and fairness.

What Records Help Prove Underpayment

You don’t need perfect documentation to have a valid case. But the more detail you can provide, the stronger your claim becomes. Under New York Labor Law, the employer is responsible for keeping accurate records, but you can help fill the gaps.

Here are some records that can support your case:

• Daily logs of when you started and stopped work
• Screenshots, texts, or emails showing job assignments or shift confirmations
• Photos or notes tracking the number of tasks you completed

Once a claim is filed, the New York State Department of Labor or a court will compare your records to what the employer submitted. If theirs are missing or inaccurate, the law favors your side.

How New York Treats Piece-Rate Pay Differently than Vermont

New York’s labor laws offer stronger protections than states like Vermont when it comes to piece-rate pay. In Vermont, there is less clarity around how minimum wage and overtime apply in nontraditional pay structures. Enforcement often depends on complaints, with fewer audits or targeted investigations.

New York, on the other hand, enforces wage orders by industry. For example, the Hospitality Industry Wage Order and the Miscellaneous Industries Wage Order outline specific rules for calculating pay in piece-rate situations. These laws give workers clearer legal ground to challenge underpayment.

And under NY Labor Law §663, workers can pursue legal action directly in court to recover wages, damages, and attorney’s fees. That’s a powerful tool not every state offers.

What You Can Recover When You’re Paid Too Little Per Job

When employers underpay through piece-rate systems, the law gives you a clear path to recovery. Under New York and federal law, you may be entitled to:

• Back wages to cover the difference between what you earned and what you should have earned
• Liquidated damages equal to 100% of your unpaid wages
• Prejudgment interest, often at 9% under New York’s CPLR §5001
• Legal fees, so your employer foots the bill for your case

Some cases also result in additional penalties or changes to the employer’s pay practices. If others at your job were also underpaid, you might be able to pursue a group claim.

If your pay hasn’t added up for a while, now’s the time to look closer. At Horn Wright, LLP, our employment law attorneys will help you break it all down and see if you’ve been shorted. Our team has earned national recognition for taking action in cases just like yours, and we’re ready when you are.