On-call pay is compensation provided to employees who are required to be available outside of their regular working hours. They may not be actively working, but they must be reachable and ready to report to duty if needed.

When should on-call pay be used?

· It’s appropriate when employees’ freedom is significantly restricted. Example: You are required to stay within a certain radius, respond within a short time frame, or wear a pager or phone. Think of healthcare workers, utility technicians, or IT professionals who might need to resolve urgent issues during off-hours.

When should it not be used?

· If employees are truly free to use their time as they please and are only paid if they are called in, then on-call pay may not be necessary. In such cases, compensating only for actual hours worked (with applicable overtime) can be compliant and fair.

When should you consult legal counsel?

Always seek legal advice when designing an on-call policy, especially if:

Your policy restricts personal activities or movement.
The role involves a mix of exempt and nonexempt duties.
You're unsure whether the time is “compensable” under the FLSA or state laws.

Who typically receives on-call pay?

Industries with critical infrastructure and 24/7 operations are the most common:

Healthcare (e.g., surgeons, anesthesiologists)
IT/Tech Support
Utilities (electric, gas, water)
Emergency services
Facilities maintenance

What’s the typical rate in the U.S.?

· Rates vary. A flat fee ($# per day) or an hourly stipend ($# per hour) is common. When called in, employees are paid their regular or overtime rate. Some union contracts and state laws may require higher amounts, especially for standby restrictions.

Is on-call pay used globally?

· Yes, but practices vary. In countries like Canada, the UK, and Australia, on-call compensation is often governed by collective agreements or national labor standards. Multinationals should align with both local labor laws and global equity.

On-call pay is more than a perk. It’s a compliance and engagement tool. Get it right, and you protect your employer brand and retain talent that needs to respond quickly.

Have you recently reviewed your on-call policy? Let’s start a conversation.

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