California Court Validates Piece-Rate Pay for Drivers

In a significant victory for trucking companies operating in California, in Carson v. Knight Transportation, No. VCU234186, Tulare County Superior Court Judge Lloyd Hicks decertified a class of California truck drivers who alleged that it is illegal to have a “combined” piece rate – a piece rate that covers both driving and non-driving duties – when compensation for the “piece” is based generally on the number of miles driven. The decertification order is particularly important not only because it is the first state court order addressing the legality of a combined piece rate, but also because three federal courts in California’s Northern and Central Districts have concluded that such a combined piece rate runs afoul of California’s law prohibiting the “averaging” of hours worked.