Update 7/30/15: Added links to articles discussing the case from a two law firms in the second paragraph.
Last year we added a new report to calculate each employee’s average hourly piecework rate of pay and apply that rate of pay to line items entered for breaks and other non-productive hourly pay types. This report was added to help customers comply with California court rulings and guidance issued by the Labor Commissioner specifying that employees earning piecework wages must be compensated for non-productive time (regular breaks, heat illness prevention breaks, etc.) at their average hourly rate for piecework earnings.
As of July 2015, due to a state Supreme Court ruling, Washington state now requires the same type of calculation to pay employees for non-productive time. This post contains updated instructions for using the Average Piece Rate Report to help current customers that may need to use this feature for the first time as well new customers that are getting started with our payroll system.