Is On-call Work Overtime Paid?

In some employment situations, employees are required to be on-call during times that they are not on duty at their normal work site. These on-call hours may be considered compensable hours of work (and payable at the overtime rate) if the restrictions placed on the employee during the on-call time prevent the employee from utilizing the time effectively for his/her own personal pursuits, and thus the time is regarded as being predominantly for the employer's benefit. Factors that are considered in determining whether on-call time must be treated as compensable work hours include the following:

• the average number of emergency calls the employee responds to during the on-call period
• the time in which the employee has to be at the work site after being called in
• whether an employee is subject to discipline for missing or being late to a call-back
• the extent to which an employee is able to engage in other activities while on-call

Three utility workers responsible for monitoring security systems in the utility's buildings were essentially on the job 24 hours a day, 7 days a week. When they were not working their regular shifts, they had to be ready to receive and respond to alarms, using computers at their homes. If they did not respond to an alarm within 15 minutes, they could be disciplined. The utility paid overtime for the time spent actually responding to an alarm, but not for the rest of the on-call time, which consumed all of the employees' waking (and sleeping) hours.

The employees were successful when they sued under federal law for around-the-clock overtime for everything beyond 40 hours per week. On-call time usually does not qualify as compensable overtime, but the issue is highly dependent on the facts of each case. Key factors include any agreements between the parties, the nature and extent of the restrictions, the relationship between the services rendered and the on-call time, and, perhaps most importantly, the degree to which being on call interferes with the employee's personal pursuits.

In this case, the employees on average were required to respond to three to five emergency calls per on-call period. They generally did not have to report to the plant when called, but the requirement that they take some action by computer within 15 minutes of a call made the on-call commitment more burdensome. For the court, this was all the more reason to award overtime pay for the workers who were on call during all of their off-premises time.

You can receive overtime if the calls are so frequent or conditions so restrictive that you cannot use the time effectively for your own purposes; or if you are required to report to work within a short time after being called. You won't be paid, though, if you are not required to remain at one location such as your residence but merely need to leave word where you can be reached. Being required to carry a cell phone or pager does not qualify since you are able to go about your personal activities without restriction.