Just review what an employee is by the IRS rules and what a contractor is. Pay by peice rate is not the only deciding factor.
90% of all in the industry are classified as "employees", 1099's aside.
See IRS Pub employee or Contractor
http://www.irs.gov/pub/irs-pdf/p1779.pdf
See IRS form and Instructions
http://www.irs.gov/pub/irs-pdf/fss8.pdf
If you do not feel comfortable that your situation puts you clearly in the contracting business start with the basics
Total income per pay period
total hours worked that pay period
hours into income = hourly rate (keept it above min wage)
wage rate times 1.5 = OT wage rate
hours worked-40= hours for overtime
Your production sheets shouold have a space to show how much time you spent on each job.
Non a lawyer just one who reads up on things
Re: Overtime pay on piece work
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