Piece Rate
/ˈpiːs reɪt/
Definitions
- (n.) A wage payment method where workers are compensated based on the quantity of items produced or tasks completed rather than on time worked.
Under the piece rate system, employees earn more by increasing their production output.
Forms
- piece rate
Related terms
See also
Commentary
Piece rate arrangements must comply with minimum wage laws and regulations governing fair labor standards to prevent exploitation.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.