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Compensation: Must We Pay for a Half Day if We Ask an Employee to Come in for an Hour?

If we call someone in for a meeting or training or whatever that lasts an hour on a day he or she would not otherwise be working, do we have to pay the employee for a half day? And if we call an employee back in after he or she has finished a normal shift, does the employee get a half day of pay?Robin R., HR specialist in Monterey

 

You are referring here to the state Wage Order that sets guidelines for a “reporting time pay” penalty and “call-in pay.” These pay requirements apply only to nonexempt employees. There is a rule that answers your question, but the answer is a little more complicated than “pay a half day.”

A nonexempt employee who is called in to work but is furnished less than half of the usual or scheduled day’s work (or is given no work) must be paid half the usual or scheduled day’s work, but no less than two hours or more than four hours, at the employee’s regular pay rate.

In other words, an employee who is scheduled for from two to three hours but only works, say, for one hour is paid for two hours. An employee who is scheduled for between four and eight hours, and works, say, one hour, is paid for half that amount of time scheduled (e.g., scheduled for eight, paid for four; scheduled for six, paid for three). And an employee scheduled for nine or more hours who works one hour must be paid for four hours. The hours worked also affect the calculation of overtime if the employee has already worked 40 hours during the week.

Now about the employee who is called back after a normal shift, that is, for the second time during a workday. That employee is entitled to a minimum of two hours’ pay just to come in. If the employee is called back to work after an eight-hour shift and works for just one hour, he or she is entitled to one hour of pay plus one hour of reporting time pay penalty, and in addition, the hour worked would count as overtime. If he or she works two hours or more, there is no reporting time pay penalty, but the overtime rule still applies.


Paying Overtime: 10 Key Exemption Concepts

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Circumstances Beyond the Employer’s Control

The obligation to pay for hours not worked does not apply when the workday is canceled or interrupted by circumstances beyond the employer’s control, including the following:

  • threats to persons or property
  • a recommendation by civil authorities
  • a public utility failure, including the failure of a gas, electric, water, or sewer system
  • an “Act of God” or another cause not within the employer’s control

Paid On-Call Employees

Employees who are paid to remain on call may be called to work outside their normal working hours without any guaranteed minimum of hours for which they will be paid.

For More Information

Call-in pay and reporting time pay are covered in Industrial Welfare Commission Wage Orders Section 5.

 

Shari Dunn is managing principal of CompAnalysis, a compensation and performance management consulting firm in Oakland.

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