Did you know certain types of premium pay may be due to employees when they are not working? One example of premium pay is on-call/standby pay.
When an employee is asked to be on-call and the employer places certain restrictions on his/her freedom to engage in personal business, the on-call time may be compensable. This time may be paid at a different rate than the employee would receive for working.
This type of premium pay is not considered hours worked, and does not count toward calculations for overtime or vacation accrual. Failure to provide premium payments could lead to a claim for waiting time penalties and attorney’s fees, so it is important to understand when they are triggered and how much is due.
Also, be sure to stay in compliance with Labor Code section 226 by separating actual hours worked from any premium hours on your employees’ paycheck stubs.
