Reporting Time Pay

What Is Reporting Time Pay?

Reporting time pay is a California wage protection that requires employers to pay employees a minimum amount when they report to work as scheduled but are sent home early, given less work than expected, or not put to work at all. This rule ensures workers receive some compensation for their time and effort in showing up, even when the employer doesn't need them.

Under California's Industrial Welfare Commission (IWC) Wage Orders, reporting time pay guarantees employees at least half of their scheduled shift (with a minimum of 2 hours and maximum of 4 hours) at their regular rate of pay.

California Reporting Time Pay Requirements

Basic Rule

When an employee reports to work but is furnished less than half the usual or scheduled day's work:

Situation	Minimum Pay Required
Report to work, sent home immediately	2 hours minimum
Report to work, work less than half shift	Half the scheduled shift
Maximum reporting time pay	4 hours

Calculation Examples

Example 1: 8-Hour Shift, Sent Home After 1 Hour

• Scheduled: 8 hours
• Half of scheduled: 4 hours
• Employee worked: 1 hour
• Pay owed: 4 hours (half of 8, capped at maximum)

Example 2: 6-Hour Shift, Sent Home Immediately

• Scheduled: 6 hours
• Half of scheduled: 3 hours
• Employee worked: 0 hours
• Pay owed: 3 hours (half of 6)

Example 3: 3-Hour Shift, Sent Home After 30 Minutes

• Scheduled: 3 hours
• Half of scheduled: 1.5 hours
• Minimum required: 2 hours
• Pay owed: 2 hours (minimum applies)

When Reporting Time Pay Applies

Situations Requiring Reporting Time Pay

• Employee reports to work at the scheduled time
• Employee is sent home before working half the scheduled shift
• Employer cancels work after employee arrives
• Slow business conditions result in early release

Second Reporting in Same Day

If an employee is required to report to work a second time in any one workday and is furnished less than 2 hours of work, the employee must be paid for 2 hours at the regular rate of pay.

Exceptions to Reporting Time Pay

Employers are not required to pay reporting time pay when:

Exception	Description
Operations cannot begin	Threats to employees or property, utility failure, acts of God, or civil authorities recommend work not begin
Employee is on standby	Employee is on-call status and not required to be on premises
Employee's own actions	Work is unavailable due to the employee's own actions
Mutual agreement	Employee and employer mutually agree to modified hours

Natural Disasters and Emergencies

Reporting time pay is not required when work cannot commence or continue due to:

• Earthquakes, fires, floods
• Power outages beyond employer control
• Public health emergencies
• Civil unrest or evacuation orders

Reporting Time Pay vs. On-Call Pay

Aspect	Reporting Time Pay	On-Call Pay
When it applies	Employee physically reports to work	Employee waits to be called in
Control level	Employee has arrived at worksite	Varies based on restrictions
Minimum pay	2-4 hours at regular rate	Depends on whether "engaged to wait"
Trigger	Sent home after reporting	Being placed on call status

Calculating Reporting Time Pay Rate

Reporting time pay must be calculated at the employee's regular rate of pay, not minimum wage (unless minimum wage is the employee's regular rate).

For Hourly Employees

Use the employee's standard hourly rate.

For Piece-Rate or Commission Employees

Use the higher of:

• The minimum wage
• The employee's average hourly earnings for the pay period

Industry Applications

Retail

Retail employers often face reporting time pay situations when:

• Customer traffic is slower than expected
• Weather affects store traffic
• Inventory deliveries are delayed

Restaurants and Hospitality

Common triggers include:

• Slow nights leading to early cuts
• Event cancellations
• Unexpected low reservations

Healthcare

May apply when:

• Patient census drops unexpectedly
• Procedures are cancelled
• Staffing exceeds needs

Compliance Best Practices

For Employers

1. Forecast scheduling needs: Use data to predict staffing requirements
2. Communicate early: Contact employees before they leave home when possible
3. Document exceptions: Keep records of emergencies or mutual agreements
4. Train managers: Ensure supervisors understand reporting time obligations
5. Review scheduling software: Set alerts for potential reporting time pay situations

Scheduling Strategies

• Use staggered start times
• Implement on-call scheduling policies with proper compensation
• Build flexibility into schedules
• Cross-train employees for multiple positions

Record Keeping

Employers should maintain records of:

• Scheduled hours for each shift
• Actual hours worked
• Reasons for early release
• Any mutual agreements to modify hours
• Reporting time pay calculations and payments

Penalties for Non-Compliance

Failure to pay reporting time pay can result in:

Violation	Potential Penalty
Unpaid reporting time pay	Full amount owed plus interest
Wage statement violations	$50-$100 per pay period
Waiting time penalty	Up to 30 days' wages if owed at termination
PAGA penalties	$100-$200 per pay period per employee

Common Employer Mistakes

1. Paying minimum wage instead of regular rate: Reporting time pay must be at the employee's regular rate
2. Not paying for second reporting: The 2-hour minimum applies to each required reporting
3. Misapplying exceptions: Exceptions are narrow and must be properly documented
4. Ignoring part-time workers: Reporting time pay applies regardless of employee status
5. Failing to include in final pay: Owed reporting time pay must be included in final pay

Interaction with Other Laws

Predictive Scheduling Ordinances

In cities with predictive scheduling laws (San Francisco, Los Angeles, Emeryville), additional schedule change premiums may apply on top of reporting time pay.

Split Shifts

If reporting time pay results in a split shift, additional split shift premium may be owed.

Overtime

Reporting time pay hours count toward hours worked for overtime calculations if the employee actually worked during that time.

Frequently Asked Questions

Does reporting time pay apply to salaried employees?

Reporting time pay requirements under the Wage Orders apply to non-exempt employees. Exempt employees are not covered by these provisions.

Can employees waive reporting time pay?

Employees cannot waive their right to reporting time pay. However, a mutual agreement to work fewer hours made before the employee reports is not considered a reporting time pay situation.

What if the employee is late?

If an employee reports late and misses part of their shift due to their own tardiness, reporting time pay rules may not apply in the same way. The calculation would be based on the employee's actual scheduled time after their late arrival.

Proper reporting time pay practices protect employees from lost income while giving employers flexibility to manage staffing needs within legal boundaries.