In Gonzalez v. Downtown LA Motors, LP, the California Court of Appeal for the Second District held that automotive service technicians paid on a "piece-rate" basis for repair work must also be paid a separate minimum wage for each hour spent during their shifts waiting for vehicles to repair or performing non-repair tasks at the employer's discretion. The court heye that the employer's actual method of paying the technicians, averaging the piece-rate amounts they received over the total number of shift hours worked and supplementing their paychecks if the resulting hourly rate fell below the minimum wage, violated California Wage Order No. 4-2001. In so holding, the court relied heavily on the rationale in Armenta v. Osmose, Inc. The court also affirmed the trial court's award of waiting time penalties under Section 203 of the California Labor Code.

The Gonzalez decision was originally filed on March 6, 2013, but was ordered published on April 2, 2013.

Update: On July 19, 2013, the Supreme Court of California denied review of Gonzalez v. Downtown LA Motors, LP. As a result, all California employers are now bound by the California Court of Appeal's earlier decision, finding that employees performing "piece-rate" services must also be paid a minimum wage. Those employers employing workers on a piece-rate or commission basis should review their compensation plans to ensure compliance with the California law.