A practical guide for employers who need people available outside normal shifts, from maintenance teams to home care and IT.
On-call means an employee is not on a scheduled shift but must be available to respond if needed. It is common in facilities maintenance, healthcare, home care, utilities, security, IT support and field service. Some employers call it standby, being on call or carrying the pager.
For non-exempt employees, the key payroll question is which parts of that time count as compensable time. Getting it wrong can lead to unpaid wages, and the amounts add up quickly because on-call periods are often long.
The Department of Labor’s interpretive rules on hours worked (29 CFR Part 785) describe two situations. An employee who is required to remain on the employer’s premises, or so close by that they cannot use the time effectively for their own purposes, is working while on call. An employee who only has to leave word where they can be reached, or carry a phone, is generally not working during the waiting time.
Courts look at the full picture rather than a single factor. Questions that often come up include:
| Setup | Likely treatment under federal rules |
|---|---|
| A technician must stay in a break room at the plant overnight in case a machine fails | On-call hours are likely hours worked |
| A nurse must stay within the hospital building during the on-call period | On-call hours are likely hours worked |
| An IT admin carries a phone on weekends, may go anywhere within reasonable reach and rarely gets calls | Waiting time is likely not hours worked; time spent fixing issues is |
| A maintenance worker is on call at home but must answer within five minutes and is called several times every night | Risky; the restrictions and frequency may make the whole period hours worked |
These are simplified illustrations, not legal conclusions. The answer depends on the specific facts and on state law.
Even when waiting time is not work, the time spent responding usually is. For non-exempt employees, count:
These hours are added to the employee’s other hours in the workweek, and may push the total over 40, triggering overtime. Our guide to FLSA overtime rules explains the calculation.
Some states go further than the federal standard. A few have specific rules for on-call time, minimum call-in or reporting time pay when an employee is called in but sent home early, or rules for particular industries. Some cities with predictive scheduling laws also limit on-call shifts or require extra pay when shifts are added or cancelled at short notice. Always check the rules where your employees work.
Beyond what the law requires, many employers choose to pay something for availability itself, such as a flat amount per on-call shift or a reduced hourly rate for standby time. This can make on-call duty fairer and easier to staff. If you do this for non-exempt employees, remember that some payments may need to be included in the regular rate used for overtime. Ask your payroll professional how your on-call pay affects overtime calculations.
The weak point in most on-call setups is the record. A call at 2 a.m. is easy to forget by payday. Give employees a simple way to log time the moment they start responding. With the EZTime mobile app, an employee can clock in from wherever they are, with GPS location if you enable it, and clock out when the issue is solved. On-call duty can be added to the schedule so everyone can see who is covering, and managers approve the hours along with the rest of the week’s time.
It depends on how restricted they are. If they must stay at or near the workplace and cannot use the time freely, the time is generally paid. If they can go about their own activities, usually only the time spent responding is paid.
For non-exempt employees, time spent handling a work call is generally hours worked, even if it is short and happens at home.
Any on-call time that counts as hours worked, and any time spent responding, is added to the workweek total and can trigger overtime.
Many employers pay a flat or reduced rate for standby, but all hours worked must still meet minimum wage and overtime rules. Check how the payment affects the regular rate.
The FLSA does not require extra pay for exempt employees, but some employers offer an on-call stipend as a benefit.
Set overtime thresholds and weekly hour limits in EZTime and managers get an alert while there is still time to change the schedule. Expect a $20 monthly minimum, with per-employee plans from $2 a month.