Call-in pay is compensation owed to an employee who is required to be available to work or is called in to work on short notice and receives little or no actual work. It protects employees from being on standby without getting paid fairly for their time.
It is sometimes used interchangeably with "show-up pay" or "reporting time pay," though the terms can vary by state.
How does call-in pay differ from on-call pay?
On-call pay applies when an employee must be available and reachable but has not yet been called in. Call-in pay applies when an employee is actually called in to work but is given little or no work.
Situation | Pay type |
Employee must remain available but not called in | On-call pay (if restrictions apply) |
Employee is called in and given less work than expected | Call-in pay or reporting time pay |
Employee reports to scheduled shift and is sent home early | Reporting time pay |
Federal law under the FLSA requires on-call pay when restrictions are significant enough that employees cannot use that time freely.
Which states require call-in pay?
There is no federal call-in pay requirement under the FLSA, but many states have their own rules. California, New York, New Jersey, Oregon, Connecticut, and Massachusetts each have some version of this protection.
New York requires that employees be paid for at least 4 hours or the number of hours in their scheduled shift, whichever is less, when they report to work.
How is call-in pay calculated?
It varies by state. In New York, it is the greater of four hours or actual hours worked at the applicable minimum wage. In California, reporting time pay is at the employee's regular rate, not minimum wage.
Always check the law in your state because the formulas differ significantly.
When does call-in pay apply?
It typically applies when an employee is required to report to work and is given fewer hours than expected or is sent home without enough work to justify the trip.
In some states, it also applies when an employee is on standby with severe restrictions on their time.
Is call-in pay taxable?
Yes. Call-in pay is treated as regular wages for tax purposes. It is subject to federal and state income tax withholding, Social Security, and Medicare taxes.
Key Takeaways
Description | |
Definition | Compensation when an employee reports or is called in but gets little or no work |
Federal rule | FLSA requires on-call pay when employee time is significantly restricted |
State rules | California, New York, and others have specific call-in pay minimums |
Tax treatment | Taxable as regular wages |
Vs. on-call pay | On-call pay is for being available; call-in pay is for showing up without work |
Frequently Asked Questions
Does call-in pay apply to salaried workers?
In most states, call-in pay requirements apply only to non-exempt employees. Salaried exempt employees are generally not covered.
What if an employee is on call but has no restrictions on their time?
If an employee can go where they want and do what they want while on call, the FLSA generally does not require on-call pay. The freedom to use time freely is the key factor.
Can employers eliminate call-in pay requirements by changing scheduling practices?
Some scheduling changes can reduce exposure, like providing more advance notice and reducing the frequency of last-minute call-ins. But they cannot eliminate the legal requirement where it exists by law.
Does call-in pay count toward overtime?
Generally yes. Call-in pay is included in the regular rate of pay calculation for overtime purposes under the FLSA.
