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Jun01

On Call Pay Requirements

Our employees are exempt from overtime. What is our obligation for compensation for the On Call time. We provide them a cell phone so there is no restriction on them doing whatever they please as long as they can get to their office in an hour. We are in the State of Ohio if that matters.

Ohio doesn’t provide specific guidelines for on call compensation. The federal Fair Labor Standards Act (FLSA) establishes various compensation regulations including minimum wage, overtime eligibility, recordkeeping, and child labor standards.

Under the FLSA, employees are either non-exempt or exempt from pay provisions such as overtime eligibility. On call time may be compensable for non-exempt employees in certain situations. However, exempt employees receive a fixed, predetermined salary per period regardless of the quantity or quality of work performed. Thus, a true exempt employee is not required to receive compensation for on call responsibilities.

It’s important to ensure exempt employees are classified correctly. Misclassifications can be a costly expense for an employer. To be exempt from overtime pay requirements an employee must pass all three “tests” as described by the FLSA; salary level, salary basis, and duties. Please see our previous posts which detail these standards further.

Also, consider the amount of additional work being imposed on the exempt employees. If the workload is expected to be burdensome employers may need to offer additional compensation or benefits to retain their staff. The FLSA allows employers to provide exempt employees with additional compensation without violating exempt classification guidelines. Additional compensation includes commission on sales, percentage of sales or profits, flat sum, bonus payment, paid time off, straight-time hourly pay, and time and one-half pay.

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This entry was posted on Sunday, June 1st, 2014 at 12:20 pm and is filed under
Compensation, Labor Laws.
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