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woman in front of time clockMany employers utilize the practice of having employees “on-call” in order to flex their workforce. This practice, however, often comes at a cost to the affected employees, be it by way of inconvenience, sacrificed opportunities or time spent waiting around to determine if he or she will be required to report into work. On February 4, 2019, in Ward v. Tilly’s, Inc., the California Court of Appeals addressed this common wage an hour practice used by California employers and held that Tilly’s employees who were subjected to on-call scheduling were entitled to compensation under California’s reporting time pay requirements.

Under Tilly’s policy, employees were scheduled for both regular and on-call shifts. Tilly’s then required its employees to call in two (2) hours before the start of their on-call shift to determine if they needed to report to work for their shift. Worse, Tilly’s disciplined employees who failed to call in before their on-call shifts, if they called in late or if they refused to work an on-call shift.

For their part, Tilly’s made various arguments in opposition to the claims, including pointing out that employees were not required to physically report to the workplace for an on-call shift. The Court rejected this argument, ultimately holding Tilly’s telephonic call-in requirements trigger reporting time pay. Notably, the Court pointed out how Tilly’s practice benefits employers by allowing them to keep their labor costs low when business is slow at the expense of their employees “while having workers at the ready when business picks up.” The Court recognized how this practice creates “no incentive for employers to competently anticipate their labor needs and to schedule accordingly.”

The Court also recognized how these types of policies “impose tremendous costs on employees” such as precluding other job opportunities, requiring employees to make contingent child or elder care arrangements, preventing employees from taking classes and stopping employees from making social plans. In short, the Court found such policies “significantly limit employees’ ability to earn income, pursue an education, care for dependent family members, and enjoy recreation time.” The Court also noted that reporting time pay may also be required if an employee is required to remotely log into a computer system.

This ruling in this case may have a significant impact on employer on-call policies in favor of California employees. If you believe your employer’s on-call policy is similar to Tilly’s and may require that you received reporting time pay, you should speak with a California Employment Attorney who is experienced in wage and hour matters.

Our employment attorneys in Orange County have extensive experience in handling wage and hour cases exclusively on behalf of employees. Ares Law Group, P.C. attorneys also offer a unique perspective with their collective of 30 years experiencing in employment law.