This blog post covers timely state legislative employment updates. Check out what you need to know and gain compliance tips to help you stay on top of HR, the right way.
Employers Liable for Paid Wages for On-call Scheduling
Who: Employers With On-call Employees
When: Effective immediately
Under California’s Wage Order No. 7, when employees come into work, but there isn’t enough work to keep them there, employers have to pay employees a certain amount. Depending on how much of the employees’ scheduled shift you ask them to forfeit, you need to pay employees for 2–4 hours of work at their regular pay rates.
In Ward v. Tilly’s Inc., the California Court of Appeal, Second Appellate District, ruled about on-call compensation. Specifically, the Court focused on when on-call employees don’t need to go into work, but can’t do other things, such as work another job or make personal plans, during on-call shifts. The Court held that employers with on-call scheduling that requires employees to contact their employer to confirm if they do in fact have to work triggers reporting time pay.
- Keep in mind that courts may no longer consider employees “reporting for work” as physically being at a worksite.
- Call-in requirements and on-call shifts may trigger reporting time pay requirements for certain California employers.
- Promptly review your call-in and on-call policies for compliance and adjust compensation practices accordingly.
- Seek out legal counsel as needed.