Global Compliance Desk – California

California On-Call Workers Entitled to Pay even when not Scheduled to Work

The Second Appellate District of California held that the retail employees who had to “call-in” 2 hours before their scheduled shift to find out if they have to report to work were entitled to “reporting time pay”.

The California Court of Appeal n February 4, 2019,  issued their majority and dissenting opinion in Ward v. Tilly’s, Inc. It appears to be a precedent-setting ruling in California, holding that an employee scheduled for an on-call shift may be entitled to certain wages for that shift despite never physically reporting to work. Each of California’s Industrial Welfare Commission (“IWC”) wage orders requires employers to pay employees “reporting time pay” for each workday.

Implication for Employers

California employers are bound by the Appellate Court decision and should review and if needed revise their reporting policies accordingly to avoid liability.

  • This decision strays from the general understanding of most employers that “the reporting time pay”, only covers the situation which the employee physically enters work but is sent home early (usually due to lack of work). California employers are bound by the Appellate Court decision and should revise their reporting policies accordingly to avoid liability. The court agreed that employees were “reporting for work” within the meaning of state law (Wage Order 7).
  • The Supreme Court continues to demonstrate its inclination toward favoring workers on issues of compensation and benefits in the face of legitimate employment policies. In addition, employers should not assume that they are clear if they are not involved in the commercial sector.
  • Although California Appellate court applied Wage Order No.7, most IWC wage orders share the same language in terms of time pay for reporting. The prudent employer in California should, therefore, assume that the Appellate Court decision applies to their company.

 

 

Edited by: Shreya Bhattacharya

Sajid Mir
ABOUT THE AUTHOR
Sajid Mir
A labor and employment lawyer at Replicon who specializes in global compliance. Replicon provides award-winning products that make it easy to manage your workforce. Replicon is an industry leader in global compliance and has a dedicated team which pro-actively monitors international labor regulations for ensuring proper adherence with specific country rule requirements.
Get started today.
Set up a free trial based on your business needs. Start Free Trial

Global Compliance Desk – Karnataka, India

India: Karnataka Government Permits Shops To Remain Open 24/7  On January 2, 2021, the Government of Karnataka issued a notification that allows all shops and commercial establishments in Karnataka, having…Read More

Want Real Solutions That Help You Manage Expense Tracking in Real-Time? We’ve Got Them.

A comprehensive expense tracker can provide your organization with clear insights into how corporate time and dollars are being spent and help you identify unnecessary costs, strains, time-wasting activities, and…Read More

Project Leaders: Here Are 3 Signs Your Remote Project Managers Are Overwhelmed with Technology

Overwhelmed project managers. They are not hard to find. And if you look closely, you’ll probably find a few right within your organization. As it is, project management is stressful…Read More

Demystifying the millennial workforce: 5 tips from Trunk Club’s Andrew Anderson Devine

Time magazine labels the millennial generation the “most threatening and exciting generation,” infamous for “narcissism [and] its effect: entitlement.” In the workplace, the perception of the millennial workforce is no…Read More

Exempt vs non-exempt workers: simplify employee classification

In the United States, most jobs are governed by the Fair Labor Standards Act (FLSA), which classifies workers into two broad categories: exempt and non-exempt. Under the FLSA, non-exempt employees are…Read More

The 7 must-haves for choosing the right professional services management solution

Not too long ago, if you asked any professional services organization to tell you how they managed client projects, resources and utilization rates, the answer was always the same: spreadsheets.…Read More
  • Polaris
  • Time & Project Insights
  • Time & Projects Solutions
  • Replicon Products
  • Replicon Users
  • Cloud
  • Corporate
  • Professional Services Management
  • Shared Services Management
  • Time and Attendance Management
  • Customer Feature
  • Time Intelligence
  • Industry News
  • Global Compliance Updates