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How much time does the United States Department of Labor say is appropriate for allowances(PF&D) for piece rate time studies? Hint: U.S. Department of Labor Agencies →Wage and Hour Division → Topics → Fair Labor Standards Act → Search for FOH 64i01

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Labor Standards: Piece Rate Studies

Piece rate compensation infers that payment to employees is done based on the units produced. Therefore, the amount of wages paid to employees may vary from one employee to another, based on their speed of production. However, standards of labor practice demand that employees not only consider the amount of output and hourly wages, but also time taken, on the job, engaging in activities that limit the amount of pieces that one can produce. For instance, the production process could demand that the employees spend some time waiting for replenishing of the factors of production.

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