An employer is obligated to pay all “hours worked” by a non exempt employee.  “Hours worked” includes all time the employee is “required or permitted to work, whether or not required to do so.”

In Section 2 of Wage Orders 4 and 5 (which govern Professional, Technical Clerical, Mechanical and Similar Occupations, and the Public Housekeeping Industry) there is a modified definition of “hours worked” to address “on-call” time.

“On-call”  time is considered “hours worked” and the employee must be compensated  – even if the employee does nothing but wait for something to happen. There are two types of “on-call” time.  One where the employee is “engaged to wait” and the other is where the employee is “waiting to be engaged”.   Employees who are “engaged to wait” must be paid for the “on-call” time.

To determine whether on-call time off the work site is to be paid, the restrictions placed on the employee during the ‘on-call’ time must be evaluated. A variety of factors are considered in determining whether the employer-imposed restrictions turn the on-call time into compensable “hours worked.”

These factors include:

(1) whether there are excessive geographic restrictions on the employee’s movements;
(2) whether the frequency of calls is unduly restrictive;
(3) whether a fixed time limit for response is unduly restrictive;
(4) whether the on-call employee can easily trade his or her on-call responsibilities with another employee; and,

(5) whether and to what extent the employee engages in personal activities during on-call periods.

The more restrictions placed on the employee during the ‘on-call’ time, the more likelihood there is that such time will be considered “compensable”.

What Should I Do?

  • Review the ‘on-call’ policy to determine how your policy fits within the above cited factors.
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