The never-ending story: minimum wage and task-based compensation

California employees are entitled to minimum wage for all hours worked regardless of whether they receive additional compensation for tasks performed during the course of employment. Wage borrowing, where productive time paid at a higher rate is "borrowed" to compensate employees for nonproductive time that is uncompensated or compensated at a rate lower than the minimum wage, is not permitted. Hourly pay that meets or exceeds minimum wage, however, can't be considered wage borrowing when productive time compensation can result only in an increase in the hourly rate.

Technician compensation program

Certified Tire and Service Centers, Inc., employed technicians to diagnose and repair customer vehicles. The technicians were compensated through the Technician Compensation Program (TCP). Under the TCP, Certified Tire paid technicians an hourly wage for all work performed. The hourly rate varied from pay period to pay period. A technician's hourly rate for each pay period, however, was at least a minimum hourly rate that invariably exceeded the minimum wage agreed to at the time of hire.