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How To Know When On-Call Employees Should Be Paid

On-call employees are a big benefit to many companies. They help ensure that the business is covered while keeping costs down. On-call employees generally cost little to nothing. But how much exactly should they be paid? The answer is, it depends.


While the employee is on call and not working is he able to use his time as he sees fit? If not, then the on-call time should be compensable. If the answer is yes, if employees are generally free to come and go on their on-call time, then they are not considered to be on duty and only need to be paid for the time actually spent working. You can be pretty sure that your on-call employee should be paid if they:

  • Are limited geographically – If being on-call requires the employee to be strictly limited in his geographic freedom – meaning that he cannot go to the store or out to lunch – then it’s compensable. It’s hard to say exactly how close an employee should have to be to the work site. But requiring them to stay within a five-minute drive would almost always require they be paid for their time.
  • Must stay inside one building – When an employee is required to stay in the same place – whether at a work site or at home – the employee should almost definitely be paid.
  • Wear a uniform – If an employee has to wear a uniform, their on-call time is clearly restricted. They should be paid for their time on call.
  • Must respond quickly to a call – If an employee must respond to a call from work quickly, say immediately or within 10 or 15 minutes, a court might rule that this is overly restrictive and the employee should be paid.
  • Frequently end up working while on call – If an employee occasionally gets a call, it is clear that they are truly on-call but if they get calls nearly every on-call shift or many during one-on call shift, they are not just on-call they are on duty and should be paid.

If you have an account with Timesheets.com, you can set up a special Account Code for employees who work on call shifts and set a special pay rate too. This way, at the end of a pay period, you won’t have to add up pay rates for regular work and pay rates for on call work; the system will do it for you.

10 Responses

    1. Hi Sara, if you’re spending any time completing any work task, your employer should compensate you for your time. If you don’t have a reliable time tracking system, I would recommend Timesheets.com to track the time you spend on the phone for work. You can clock in when you start talking to a customer and then clock out when you’re done. Or, you can even use a timer on Timesheets.com and press start and stop when you’re on the phone. It’s an incredibly reliable way to track your time and a way to see how much you’re actually working. Your boss does have to compensate you for the time you spend working, so it’s best that you ensure that you’re monitoring that closely.

  1. My employer has me for on call two days in a row from 7am to 11pm. I cannot travel, and must stay in the area if I would get a call. I also have to remain sober which isn’t an issue. If I do have to go in I receive an extra dollar per hour, but I don’t believe I get paid for being on call. With the restrictions in place, should I get paid?

    1. Since your on-call situation is restricted, you may want to speak with a lawyer who specializes in on-call time in your state. The law can vary depending on your company’s policy, the situation, and where you’re located.

  2. I am the administrator of a seniors home.
    I work 20n hours a week
    I am “on call” 24/7 as required by the Board who employed me.
    I have been doing this job for 6 years.
    Should I receive compensation for on call hours.

    1. Whether you’re paid or not really depends on the restrictions you have when you’re on call. Are you required to stay in one location? Are you not allowed to travel outside a certain area when on call? There are certain requirements that you need to meet in order to get paid for your on-call hours. I suggest speaking with your HR rep to figure this out.

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