What is On-Call Pay?
On-call pay is a form of compensation that is provided to employees who are required to be available for work outside of their regular working hours, in case they are needed to perform work duties. This typically applies to employees who are required to be on standby, waiting for a call to come in to perform work tasks.
On-call pay is typically paid as a fixed amount or a percentage of the employee’s regular pay rate and is intended to compensate the employee for the inconvenience and potential disruption to their personal time that comes with being on-call.
How Much is On-Call Pay?
The amount of on-call pay varies depending on the employer and the industry. In some cases, on-call pay may be a fixed amount per hour or shift, while in other cases it may be a percentage of the employee’s regular pay rate. The specific amount of on-call pay may also be negotiated as part of a collective bargaining agreement between the employer and the employee’s union.
How Does On-Call Pay Work?
On-call pay works by compensating employees for their time and availability while they are on call and waiting to be called in to work.
In addition to their regular pay for those two hours of work, the employee would also be paid two hours of on-call pay for the time they spent on call waiting to be called in.
If the employee is not called in to work during the on-call period, they would still receive the fixed on-call pay rate for each hour they were on call, even if they did not actually perform any work.
Also, See: Shift Differential Pay