R 408.775 Time study for piece rate; conduct; purpose; retention of records; review.

Rule 5. (1) Where a prevailing industry piece rate cannot be established in accordance with R 408.774, a rehabilitation facility shall conduct a time study to determine the piece rate to be paid to a handicapped worker. The following steps shall constitute an acceptable time study method for piece rates: (a) Establish the steps of each type of work to be performed by the handicapped worker. (b) Have the type of work performed by a nonhandicapped worker for a 50- minute period. (c) Determine the hourly productivity of the nonhandicapped worker by computing the sum of pieces produced during the 50-minute period. (d) Determine the piece rate to be paid to the handicapped worker by dividing the prevailing industry hourly wage rate by the hourly productivity of the nonhandicapped worker. (2) If methods other than those in subrule (1) of this rule are used, the rehabilitation facility shall demonstrate that such methods accurately establish the commensurate wage to be paid to the handicapped worker. (3) A rehabilitation facility shall retain records of time studies used to determine piece rates for 3 years. (4) Piece rates shall be reviewed and updated not less than every 6 months to reflect changes in prevailing industry wage rates.