On-Call Pay: Do You Get Paid While on Standby?
On-call pay depends on whether you are restricted or unrestricted while waiting. The FLSA tests that determine when standby time counts as compensable hours.
Whether on-call time is compensable under the FLSA comes down to whether you are 'engaged to wait' (paid) or 'waiting to be engaged' (not paid). The distinction is how restricted you are during the standby period.
When on-call time is paid
If you must stay on or near the premises, respond within a very short time window (minutes), cannot use the time effectively for personal activities, and are frequently called back, courts have generally found the on-call time to be hours worked. A nurse required to stay in the break room between calls, for example, is likely compensated for the full standby period.
When on-call time is not paid
If you are simply required to carry a phone and respond within a reasonable time (typically 30 minutes or more), can use the time freely, and are rarely actually called in, on-call time is generally not compensable. The actual time spent responding to and performing the call-out is always paid, however.
Policies can be more generous
Many employers pay a flat standby stipend per on-call shift even if the time would not be legally required to be paid. This is lawful and common in healthcare, utilities, and IT. An employer cannot, however, pay less than minimum wage for all hours actually worked during a callback, even if the standby time itself is unpaid.