What does the term “on-call” mean?
Certain companies require staff members who are always available. However, should you pay staff if you need them to be present during their off-duty hours? Several criteria determine whether you are required to pay for on-call shifts or not.
You may be breaking overtime regulations and the FLSA’s on call for work requirement if you don’t pay your workers when they are on call. Furthermore, it is common knowledge that breaking FLSA requirements may result in severe penalties.
Let’s brush up on your knowledge of on-call labor laws.
When a worker is on call, it indicates they are ready to work whenever their company needs them. While an on-call worker is not in the office, they are nonetheless reachable should the need arise. Workers who are on call might have to stay at work or close to it.
On-call shifts are sometimes used by unpredictable industries, including hospitals. Here are a few instances of on-call positions:
- Doctors and nurses
- Repair personnel
- IT specialists
- Employees in retail
It is debatable whether or not on-call time counts as hours worked under the Fair Labor Standards Act.
It is necessary to compensate your staff for their on-call time if their on-call hours are considered hours worked.
You don’t have to pay your staff while they wait if on-call time isn’t included as hours worked. Employees must be paid, nevertheless, when they answer a phone.
Whether or not you have to pay for on-call work depends on a number of criteria. Recall that FLSA rules only pertain to nonexempt workers. For exempt personnel, you are not required to pay for on-call time. If you are sued for not paying employees who are on call for work, please contact our California employer class action defense attorney for a free consultation.
When is it appropriate to offer on-call pay?
According to federal on-call pay regulations, you must pay staff members for the hours they work. And a variety of factors influence the number of hours worked.
The FLSA frequently decides what is required for on-call pay on a case-by-case basis. On the other hand, the Department of Labor provides broad standards for figuring out on-call compensation.
The main question with on-call employment laws is whether or not the employee is restricted. If the worker is restricted, you are required to pay them for on-call labor because their time is usually seen as hours worked. It’s unlikely that you will need to pay the employee for their waiting time if they are not restricted.
The capacity of the employee to use their time and their location are the two key factors that determine whether they are on-call without restrictions or not.
First, location. Proceed to dissect it further to ascertain the best way for the staff member to utilize their time.
Look up the employee’s location first. Consider this:
Is the worker required to stay on or close to your company’s property while they are on call?
When on call, is the worker allowed to go wherever they please?
- The worker needs to stay on the property or close by
When an employee is in or close to your place of business, their time is deemed to have been worked. If you have restrictions on where employees can go, then on-call time counts as hours worked as well.
As the time is seen as hours worked, you usually have to pay the employee who is on call.
Suppose you need a nurse who is on call to remain in the hospital. Even though the nurse is able to watch TV or take a nap, their time is still counted as hours worked. Why? therefore they have to remain at the hospital.
- The worker is free to depart the area
Assess whether the worker may utilize their time for personal activities if they are not required to be on or near the company’s property.
Ask the worker whether they are able to use their time for personal reasons by posing queries such as these:
- Is it possible for the worker to utilize the time for personal pursuits?
- When an employee is on call, how often do you phone them?
- How long does an employee have to reply after receiving a call?
- An employee may be prevented from using their time for personal activities by limited activity, frequent calls, and urgent action.
2A. A worker may engage in personal activities throughout their on-call shift.
You probably won’t have to pay the worker while they wait if they are allowed to use their on-call time for personal purposes.
Once more, you have to reimburse the staff member for the time they spend answering calls.
Let’s say a worker who is always available spends the day in a shopping center. They get one call that takes them out of their work for thirty minutes during a four-hour on-call shift. After thirty minutes of labor, give them money. However, during the remaining three hours and thirty minutes, you are not required to pay them.
2B. An employee is not permitted to spend personal time while on call.
You usually have to pay for on-call work when an employee’s personal activities are limited.
Imagine that when you phone an employee, they are telling a story to their child. The worker closes the book and gets in the car to go to work. The worker answers the phone, goes home, and carries on reading the story to their child. Their phone goes off once more. The employee is not allowed to participate in personal activities because of the frequent phone calls. You must therefore pay for on-call labor for the duration of the on-call shift.
Learn more: Do I as an employer have to pay employees who are on call for work?
Other factors to consider: state legislation and corporate policies
Know your state’s laws regarding on-call privileges in addition to federal ones. Laws governing on-call pay are more stringent in some states. The on-call statutes in California, for instance, cover employees who call in to inquire about their need to report for duty.
Review the on-call pay regulations in your state to ensure compliance.
You have the option to pay employees who have unrestricted time even if you are not compelled to under state or federal legislation.
Make sure the employee handbook contains information on your company’s on-call policies.
A quick guide to figuring out on-call compensation
When assessing whether the time spent by an on-call employee counts as hours worked, you need to ask the following questions:
- Is the employee covered by an exception or not?
- Does the worker have to remain on the company’s property?
- Do I limit the worker’s availability for on-call shifts?
- What is stated by my state?
- What are the policies of my company?
If you are having difficulties deciding whether to offer on-call pay, visit the website of the Department of Labor or speak with a small company attorney.
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