On-Call Pay

What Is On-Call Pay?

On-call pay refers to compensation provided to employees who must remain available to return to work or respond to work-related matters outside their regularly scheduled hours. Being "on call" means an employee must be ready to work if needed, often with restrictions on their activities or location.

In California, whether on-call time must be compensated—and how much—depends on how restrictive the on-call requirements are and how much they impact the employee's freedom to use their time.

When Is On-Call Time Compensable in California?

California courts use a "control test" to determine if on-call time must be paid. The key question: Does the employer exert such control over the employee's activities that they cannot effectively use the time for personal purposes?

Factors Courts Consider

Factor	More Likely Compensable	Less Likely Compensable
Geographic restrictions	Must stay home or very close	Can go anywhere with cell service
Response time	Must respond within minutes	Can respond within hours
Frequency of calls	Called frequently	Rarely called
Ability to trade	Cannot swap on-call duties	Can exchange with coworkers
Activity restrictions	Cannot consume alcohol, must be "ready"	Few restrictions on activities
Consequences	Discipline for missing calls	No significant consequences

The Spectrum of On-Call Time

Clearly Compensable:

Waiting at the employer's premises
Must remain within 5-10 minutes of workplace
Cannot engage in personal activities
Frequently called back to work

Gray Area:

Must carry a pager/phone at all times
30-minute response time required
Occasionally called back to work
Some activity restrictions

Generally Not Compensable:

Free to go anywhere with phone coverage
Multi-hour response window
Rarely actually called
Few restrictions on activities

Types of On-Call Arrangements

Standby Pay

Employee must remain ready to work, often at or near the workplace:

Usually fully compensable as hours worked
Common in healthcare, utilities, emergency services
May be paid at regular rate or reduced standby rate (if agreed)

On-Call Shifts

Employee is scheduled for on-call duty for a specific period:

May or may not be compensable depending on restrictions
Often paid a flat on-call premium plus hourly pay if called in
Common in IT support, property management, healthcare

Pager/Phone On-Call

Employee carries a device and must respond if contacted:

Compensability depends on response time and frequency
If not compensable as hours worked, employees often receive a flat stipend
Time actually worked when called is always compensable

California Specific Rules

Mendiola v. CPS Security (2015)

This California Supreme Court case clarified that on-call time can be compensable even if the employee is not confined to the employer's premises. The court established that:

"The level of the employer's control is the most important factor in determining whether on-call time is compensable."

Security Guards and Similar Roles

Following Mendiola, employers with on-call security guards or similar positions must carefully evaluate:

Where employees must sleep/stay
How quickly they must respond
What activities they can pursue during on-call time
Whether on-call time should be paid

Healthcare Workers

Hospitals and healthcare facilities often use on-call arrangements:

Time spent waiting to be called may be compensable
Time worked after being called is always compensable
Meal period rules apply during on-call shifts
On-call pay must be included in regular rate calculations

Calculating On-Call Compensation

When On-Call Time Is Hours Worked

If on-call time is compensable, it must be:

Paid at least minimum wage
Counted toward overtime calculations
Included in the regular rate of pay for overtime purposes

When On-Call Time Is Not Hours Worked

Even if on-call time itself isn't compensable:

Time actually worked when called in must be paid
Reporting time pay may apply if employees are called in
Any on-call stipends must be included in the regular rate for overtime

Example: On-Call Premium in Overtime Calculation

An employee earns $20/hour and receives a $100 weekly on-call stipend:

Regular hours worked: 45
On-call stipend: $100
Base wages: 45 × $20 = $900
Total compensation: $900 + $100 = $1,000
Regular rate: $1,000 ÷ 45 = $22.22/hour
Overtime premium: 5 hours × $11.11 = $55.55
Total pay: $1,055.55

On-Call Pay Policies

Employers should establish clear written policies addressing:

Response Requirements

How quickly must employees respond to calls?
What is the preferred contact method?
What happens if an employee misses a call?

Compensation Structure

Is on-call time paid as hours worked?
Is there a flat on-call stipend?
How is callback time compensated?

Scheduling Procedures

How is on-call duty scheduled and rotated?
How much notice is given for on-call assignments?
Can employees trade on-call shifts?

Geographic and Activity Restrictions

Are there location requirements?
Are there activity restrictions (alcohol, travel distance)?
What equipment must employees have available?

Best Practices for Employers

Assess compensability carefully: Evaluate your specific on-call arrangements against California's control test
Document restrictions clearly: Put on-call expectations in writing so employees understand their obligations
Track on-call time: Even if not currently paying, maintain records in case of future disputes
Review industry standards: Understand how similar employers in your industry handle on-call pay
Consider restructuring: If on-call time is borderline, evaluate whether loosening restrictions could make it clearly non-compensable
Use scheduling software: Automate on-call rotation, callback tracking, and compensation calculations
Train managers: Ensure supervisors understand when on-call time accrues and how to record it

Common Industries with On-Call Requirements

Industry	Common On-Call Arrangements
Healthcare	Nurses, doctors, technicians on-call for emergencies
IT/Tech	System administrators for after-hours support
Property Management	Maintenance staff for tenant emergencies
Utilities	Repair crews for outages and emergencies
Security	Guards on standby for additional coverage
Transportation	Drivers on call for unscheduled routes

Understanding California's nuanced approach to on-call pay helps employers design compliant programs while managing labor costs effectively.