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

Calculating the ROI of Your Projects with Time Tracking

Before initiating a project, professional services firms want to know how much profit and revenue they can generate for the company. Return on Investment (ROI) analysis helps firms to evaluate…Read More

Humanizing the Time Tracking Tool

Benjamin Franklin once said, ‘Time is money’ and nowhere is truer than in business. Time is a strategic asset that is extremely limited. Businesses that use their limited time productively…Read More

How Time Tracking Improves Bottom Line Results

Every enterprise is looking for ways to improve its bottom line and gain profit in a given time. From hiring the right talent to training their existing employees, organizations spend…Read More

Will AI replace consultants?

The onset of AI and smart machines automating formerly-human jobs has been discussed at length as of late -- often in relation to manufacturing and manual labor jobs. And yet,…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

Time and Attendance Orientation Guide

In a growing business, the day will eventually come when managing time and attendance on paper becomes both inefficient and risky, especially when trying to balance things like overtime, paid…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
  • Others