California Codes

Cal. Labor Code § 226.2 (2026)

✓ current as of May 2026

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This section shall apply for employees who are compensated on a piece-rate basis for any work performed during a pay period. This section shall not be construed to limit or alter minimum wage or overtime compensation requirements, or the obligation to compensate employees for all hours worked under any other statute or local ordinance. For the purposes of this section, “applicable minimum wage” means the highest of the federal, state, or local minimum wage that is applicable to the employment, and “other nonproductive time” means time under the employer’s control, exclusive of rest and recovery periods, that is not directly related to the activity being compensated on a piece-rate basis.

(a)For employees compensated on a piece-rate basis during a pay period, the following shall apply for that pay period:

(1)Employees shall be compensated for rest and recovery periods and other nonproductive time separate from any piece-rate compensation.

(2)The itemized statement required by subdivision (a) of Section 226 shall, in addition to the other items specified in that subdivision, separately state the following, to which the provisions of Section 226 shall also be applicable:

(A)The total hours of compensable rest and recovery periods, the rate of compensation, and the gross wages paid for those periods during the pay period.

(B)Except for employers paying compensation for other nonproductive time in accordance with paragraph (7), the total hours of other nonproductive time, as determined under paragraph (5), the rate of compensation, and the gross wages paid for that time during the pay period.

(3)(A) Employees shall be compensated for rest and recovery periods at a regular hourly rate that is no less than the higher of:

(i)An average hourly rate determined by dividing the total compensation for the workweek, exclusive of compensation for rest and recovery periods and any premium compensation for overtime, by the total hours worked during the workweek, exclusive of rest and recovery periods.

(ii)The applicable minimum wage.

(B)For employers who pay on a semimonthly basis, employees shall be compensated at least at the applicable minimum wage rate for the rest and recovery periods together with other wages for the payroll period during which the rest and recovery periods occurred. Any additional compensation required for those employees pursuant to clause (i) of subparagraph (A) is payable no later than the payday for the next regular payroll period.

(4)Employees shall be compensated for other nonproductive time at an hourly rate that is no less than the applicable minimum wage.

(5)The amount of other nonproductive time may be determined either through actual records or the employer’s reasonable estimates, whether for a group of employees or for a particular employee, of other nonproductive time worked during the pay period.

(6)An employer who is found to have made a good faith error in determining the total or estimated amount of other nonproductive time worked during the pay period shall remain liable for the payment of compensation for all hours worked in other nonproductive time, but shall not be liable for statutory civil penalties, including, but not limited to, penalties under Section 226.3, or liquidated damages based solely on that error, provided that both of the following are true:

(A)The employer has provided the wage statement information required by subparagraph (B) of paragraph (2) and paid the compensation due for the amount of other nonproductive time determined by the employer in accordance with the requirements of paragraphs (4) and (5).

(B)The total compensation paid for any day in the pay period is no less than what is due under the applicable minimum wage and any required overtime compensation.

(7) An employer who, in addition to paying any piece-rate compensation, pays an hourly rate of at least the applicable minimum wage for all hours worked, shall be deemed in compliance with paragraph (4).

(b)This section shall become operative on January 1, 2021.

Notes of Decisions

Cited in 40 cases (16 in the last 5 years), 2016–2025 · leading case: Fowler Packing Co., Inc. v. David Lanier, 844 F.3d 809 (9th Cir. 2016).

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Fowler Packing Co., Inc. v. David Lanier, 844 F.3d 809 (9th Cir. 2016). · cites it 7× “Cal. Lab. Code § 226.2 (a). To protect California businesses from unforeseen liability arising from Gonzalez and Bluford , however, AB 1513 also created a “safe harbor” that provided employers with an affirmative defense against claims alleging failure to pay previously for…”

Charles Ridgeway v. Wal-Mart Stores, Inc., 946 F.3d 1066 (9th Cir. 2020). “” Cal. Lab. Code § 226.2 (a)(1). But the district court did not err by refusing to include this instruction because, as the district court noted, the Code section with the “directly related” language did not take effect until January 1, 2016, after the close of the class period.”

Oman v. Delta Air Lines, Inc., 466 P.3d 325 (Cal. 2020). “(Lab. Code, § 226.2, subd. (a), added by Stats.”

Jackpot Harvesting Co. v. Superior Court of Monterey Cnty., 237 Cal. Rptr. 3d 1 (Cal. Ct. App. 5th 2018). “*133 Labor Code section 226.2, 1 which became effective January 1, 2016, addresses the manner in which piece-rate employees are to be compensated for rest and recovery periods and other *134 nonproductive time on the job (collectively, rest/NP time).”

Labor & Workforce Dev. Agency v. Superior Court of Sacramento Cnty., 227 Cal. Rptr. 3d 744 (Cal. Ct. App. 5th 2018). “( Lab. Code, § 226.2, subds. (g)(2) & (g)(5).”

Villalpando v. Exel Direct Inc., 161 F. Supp. 3d 873 (N.D. Cal. 2016). “On further consideration, the Court concludes that the wages sought for rest breaks taken are governed by a separate provision of the California Labor Code, section 226.2 (requiring separate compensation for rest breaks as to employees who are compensated on a piece rate), and…”

Peralta v. Wonderful Citrus Packing, LLC. (E.D. Cal. 2020). · cites it 11× “) In Reply, Defendant generally opposes any fee requests, 22 but defers any substantive argument pending a properly-noticed fees motion.”

Fowler Packing Co., Inc. v. David Lanier (9th Cir. 2016). · cites it 7× “Cal. Lab. Code § 226.2 (a). To protect California businesses from unforeseen liability arising from Gonzalez and Bluford, however, AB 1513 also created a “safe harbor” that provided employers with an affirmative defense against claims alleging failure to pay previously for…”

Williams v. J.B. Hunt Transp., Inc. (9th Cir. 2025). · cites it 6× “Hunt violated Cal. Labor Code § 226.2 by improperly paying them on a piece-rate basis without additional compensation for nonproductive time.”

Shook v. Indian River Transp. Co., 236 F. Supp. 3d 1165 (2017). · cites it 2× “rivate Attorneys General Act (“PAGA”)) (failure to separately compensate for rest breaks and unpaid wages); 4) Business & Professions Code § 17200 (California Unfair Competition Law); 5) Labor Code §§ 201 and 203 (failure to compensate employees for non-driving work before and…”

Eddie Silva v. Domino's Pizza, LLC (9th Cir. 2022). · cites it 4× “The district court did not err in denying Silva’s motion for summary judgment on his claim that Domino’s failed to compensate him at an hourly rate for other nonproductive time, in violation of Cal. Labor Code § 226.2 (a)(4). Domino’s policy manual states that drivers are paid…”

Gomez v. J. Jacobo Farm Labor Contractor, Inc. (E.D. Cal. 2019). · cites it 3× “Cal. Lab. Code § 226.2 (a)(3)(A) (setting the compensation rate at the 7 “higher of” the applicable minimum wage or “[a]n average hourly rate”); Gonzalez v.”

Show all 40 citing cases →

— Cal. Labor Code § 226.2(a) — 1 case

Cruz v. MM 879, Inc. (E.D. Cal. 2025).

— Cal. Labor Code § 226.2(a)(2)(A) — 1 case

Reyes v. Five Diamond Cold Storage, Inc. (E.D. Cal. 2024).

— Cal. Labor Code § 226.2(b) — 2 cases

Shook v. Indian River Transp. Co., 236 F. Supp. 3d 1165 (2017). “rivate Attorneys General Act (“PAGA”)) (failure to separately compensate for rest breaks and unpaid wages); 4) Business & Professions Code § 17200 (California Unfair Competition Law); 5) Labor Code §§ 201 and 203 (failure to compensate employees for non-driving work before and…”

Peralta v. Wonderful Citrus Packing, LLC. (E.D. Cal. 2020). “) In Reply, Defendant generally opposes any fee requests, 22 but defers any substantive argument pending a properly-noticed fees motion.”

— Cal. Labor Code § 226.2(b)(1)(B) — 2 cases

Peralta v. Wonderful Citrus Packing, LLC. (E.D. Cal. 2021).

— Cal. Labor Code § 226.2(j) — 1 case

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