On-Call Compensation

Blueblazer · October 2001

There are several employees who receive compensation (in accordance with the bargaining unit contract)in the amount of up to $100.00 per week for being on an "on-call" status. This compensation was in response to the agency's requirement at the time of hire that the employee be available on a 24 hour on-call basis. If the employee is removed from on-call status for the purpose of budgetary crisis etc., and subsequently loses the $5,000+ in annual compensation, is there any case precidence that would require or compel the agency to continue paying the employee based on the fact that the employee has become "accustomed" to the salary.

Hatchetman · October 2001

[font size="1" color="#FF0000"]LAST EDITED ON 10-29-01 AT 01:17PM (CST)[/font][p]How does your labor contract characterize the payment -- part of the base or as a supplement or bonus? That may be more telling than just saying "it's accustomed." And is the "on-call" established by seniority and is the "on call" status part of every job or "voluntary" or what? Again, these conditions may indicate to what extent you can eliminate or remove the on-call assignment and pay from an employee. To some extent, FLSA says that the "on call" time (not the actual "call back") is not considered as regular pay.

Blueblazer · October 2001

Its not part of the base pay. Per contractual agreement its considered "compensation" for the on-call requirement of the position. Its not based on seniority and its not in the job description. The posting for the position read that the applicant "may" be required to be on 24 hour on-call. The position currently requires on-call status. Anticipating potential problems during a serious budget crunch should they position be taken off this status.

bikes · October 2001

So what are the laws on this? We have a situation where an employee is being asked to start working on-call during weekends. He's wondering if he gets extra money for this, and any laws associated with it. He's salary non-exempt.

System · October 2001

Bikes, "on call" means, from the way I understand your use, essentially on stand-by. The employee performs no work but needs to be available to return to work "immediately" (usually within a reasonable, specified time), but is otherwise free to spend his off time as he sees fit. Under FLSA, you need not compensate the employee for the on-call status unless it is substantially restrictive in some way (for example, the emplyee is required to stay at the worksite).

System · October 2001

Blueblazer, if the on-call status is not an essential function of the job, and it isn't from the way you describe it, then I don't see where there is a problem in stopping the compensation if you stop the assignment. Whether you want to stop on-call status of course is a management decision. But if you need to do that, then that's the call.

Under FLSA, you don't need to compensate for on-call status if the can use the time while on call as he or she choose. If it is not unreasonably restrictive, then FLSA doens't require compesnation. The more restrictions you place on the individual that prevent him or her from using the time while on call at her or his own discretion the more likely it is that you will be considered as having to compensate with regular earnings.

Check your state law as well; it may speak to on-call status.

System · November 2001

If they're not on call anymore, the FLSA doesn't require you to pay them. But your collective bargaining agreement might. You might want to have a lawyer look over your CBA. If you don't have one, you can try the ones who write the Employment Law Letter in your state:

[url]http://www.hrhero.com/findanattorney.shtml[/url]

James Sokolowski
Senior Editor
M. Lee Smith Publishers

On-Call Compensation

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