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Piece work or piecework is any type of employment in which a worker is paid a fixed piece rate for each unit produced or action performed, regardless of time.

When paying a worker, employers can use various methods and combinations of methods. Some of the most prevalent methods are: wage by the hour (known as "time work"); annual salary; salary plus commission (common in sales jobs); base salary or hourly wages plus gratuities (common in service industries); salary plus a possible bonus (used for some managerial or executive positions); salary plus stock options (used for some executives and in start ups and some high tech firms); salary pool systems; gainsharing (also known as "profit sharing"); paid by the piece – the number of things they make, or tasks they complete (known as ‘output work’); or paid in other ways (known as ‘unmeasured work’). Some industries where piece rate pay jobs are common are agricultural work, cable installation, call centers, writing, editing, translation, truck driving, data entry, carpet cleaning, craftwork, garment production, and manufacturing. Working for a piece rate does not mean that employers are exempt from paying minimum wage or overtime requirements, which vary among nations and states. Employers may find it in their interest to use piece rate pay after examining three theoretical considerations; the cost and viability of monitoring output in a way that accurately measures production so that quality doesn't decrease is first. Variable skill level is second, where piece rates are more effective in a more homogenous workforce. Thirdly, there may be more invasive managerial relations as management attempts to test how fast the workers can produce. Employees decide whether to work for piece rate pay if the relative earnings are high, and if other physical and psychological conditions are favorable. Some of these might be job stress, physicality, risks, degree of supervision and ability to work with peers or family members.

Under UK law, piece workers must be paid either at least the minimum wage for every hour worked or on the basis of a ‘fair rate’ for each task or piece of work they do. Output work can only be used in limited situations when the employer doesn't know which hours the worker does (e. g. some home workers). If an employer sets the working hours and the workers have to clock in and out, this counts as time work, not as output work. The fair rate is the amount that allows an average worker to be paid the minimum wage per hour if they work at an average rate. This must be calculated in a set way, a control trial is run to determine the average items produced by equivalent workers, this is divided by 1.2 to reach the agreed average figure, and the fair rate is set to ensure each worker achieves the minimum wage. efn|Example: Workers are paid for each shirt they make. They can produce on average 12 shirts per hour. This number is divided by 1.2 to make 10. Andy is 21 and is eligible for the minimum wage rate of £6.19. This means he must be paid at least 62p per shirt he makes (£6.19 divided by 10, rounded up).

In the mid 19th century, the practice of distributing garment assembly among lower skilled and lower paid workers came to be known in Britain as the sweating system and arose at about the same time that a practical (foot powered) sewing machine, was developed. Factories that collected sweating system workers at a single location, working at individual machines, and being paid piece rates became pejoratively known as sweatshops. There can be improper record keeping at the hands of supervisors attempting to cheat employees, to build piece rate systems that prevent workers from earning higher wages. That is often at the cost of both the worker and the enterprise, however, as the quality and the sustainability of the business will be threatened by decreases in quality or productivity of workers attempting to stay afloat. Put another way, if the payment for producing a well made item is not enough to support a worker, workers will need to work faster, produce more items per hour, and sacrifice quality. Today, piece work and sweatshops remain closely linked conceptually even though each has continued to develop separately. The label "sweatshop" now refers more to long hours, poor working conditions, and low pay even if they pay an hourly or daily wage labour, instead of a piece rate.

In the United States, the Fair Labor Standards Act requires that all employees, including piece work employees, earn at least the minimum wage. In calculating an appropriate piece work rate, employers must keep track of average productivity rates for specific activities and set a piece work rate that ensures that all workers are able to earn minimum wage. If a worker earns less than the minimum wage, the employer has to pay the difference. Exceptions to this rule include instances where: (i) the worker is a family member of the employer; (ii) if in any calendar quarter of the preceding year there were fewer than 500 person days of work lasting at least one hour; (iii) in agricultural businesses, if a worker primarily takes care of livestock on the range; (iv) if non local hand harvesting workers are under 16, are employed on the same farm as their parent, and receive the piece work rate for those over 16.

Incentivizes Productivity: Piece rate pay encourages workers to increase their output as they directly benefit from producing more. Flexibility: Piece rate pay can offer flexibility to workers as they can often choose their own hours and work at their own pace, especially in jobs such as freelance writing or data entry. Potential for Higher Earnings: Skilled workers who are efficient in their tasks can potentially earn more through piece rate pay than through traditional hourly wages.

Quality Concerns: Workers may sacrifice quality for quantity to maximize their earnings, leading to potential issues with the quality of goods or services produced. Risk of Exploitation: Some employers may set piece rates unfairly low, leading to workers being underpaid for their labor, especially in industries with low barriers to entry. Lack of Stability: Piece rate pay may not provide a stable income, as earnings can fluctuate based on factors such as demand for the product or service and individual productivity levels.