Compensating
Employees for On-Call Time
July
2010
Many organizations need to be able to respond
around-the-clock to urgent client requests or emergencies. By
putting some employees on call, companies can reduce staffing
levels and save money.
This article highlights results from the 2010 Culpepper
On-Call Pay Practices Survey on supplemental pay provided to
employees required to remain on call and available to respond to
problems during off-duty hours. Topics covered include
eligibility by job function & job level, methods & amounts of
on-call pay, differences between hourly & salaried employees,
and provision of mobile devices and telecom service.
Key Survey Findings
-
The most common types of jobs eligible for on-call pay
include information technology (IT), customer service, and
facilities.
-
Most hourly employees are compensated for on-call time with
overtime pay.
-
Nearly half of companies provide salaried employees with
additional compensation for on-call time. Salaried employees
typically receive additional flat cash payments or
compensatory time-off for on-call time.
-
Most companies (92 percent) require on-call employees to
carry a mobile device (e.g., smartphone, mobile/cell phone,
beeper/pager). Eighty-two percent provide a mobile device to
employees on call and pay 100 percent of the mobile telecom
service expense.
On-Call Eligibility by Type of Job
Information technology
(IT) jobs are the most likely to be eligible for on-call pay
(Table 1), followed by customer service and facilities.
|
Table 1:
On-Call Pay
Eligibility by Type of Job * |
|
Department / Job Function |
Percent of Companies |
|
Accounting & Finance |
5.9% |
|
Administrative Services |
5.9% |
|
Customer Service & Support |
50.3% |
|
Human Resources |
43.1% |
|
Facilities |
6.7% |
|
Information Technology (IT) |
69.9% |
|
Legal, Regulatory & Government Affairs |
5.6% |
|
Life Sciences: Clinical Trial Services |
5.8% |
|
Life Sciences: Laboratory Services |
15.8% |
|
Manufacturing & Production |
18.8% |
|
Marketing & Public Relations |
6.2% |
|
Research & Development (R&D) |
11.5% |
|
Sales Reps |
7.8% |
|
Sales Support |
8.0% |
* In addition to the job functions
listed in Table 1, other job functions noted by participants
eligible for on-call pay include engineering and healthcare
services. On-call pay for healthcare service jobs (e.g., nursing
and physicians) is common. However, this survey focused on
common job functions found in technology and life science
organizations.
On-Call Eligibility by Job Level
Non-management hourly (non-exempt)
employees are more likely to be eligible for on-call pay than
other job levels (Table 2).
|
Table 2:
On-Call Pay Eligibility by Job Level |
|
Percent of Companies Providing
On-Call Pay |
|
Management
Salaried (Exempt) |
Non-Management
Salaried (Exempt) |
Non-Management
Salaried
(Non-Exempt) |
Non-Management
Hourly
(Non-Exempt) |
|
16.2% |
58.8% |
60.0% |
84.0% |
Method of On-Call Compensation: Hourly Employees
The most common method of
compensation for hourly employees on call is to pay overtime for
time worked (Table 3). Flat amounts are common, with by-the-week
being the most common (24 percent).
|
Table 3:
Method of On-Call
Compensation: Hourly Employees |
|
Percent of Companies Paying |
|
Overtime |
Flat Amount Paid
for Each |
For
Time Worked |
For
Travel |
Week
On Call |
Day
on Call |
Weekend
on Call |
Month
on Call |
|
35.8% |
14.2% |
24.3% |
20.3% |
8.8% |
1.4% |
|
Note: Percentages add up to
over 100 percent since companies may have more than one
compensation method. |
Method of On-Call Compensation: Salaried Employees
Nearly half of companies
provide salaried employees with additional compensation for
on-call time. Salaried employees typically receive additional
flat cash payments per week of on-call time (Table 4).
|
Table 4:
Method of On-Call
Compensation: Salaried |
|
Percent of Companies Paying |
Flat Amount
per Week |
Flat Amount
per Weekday |
Flat Amount
per Weekend |
Compensatory
Time Off |
No Additional
Compensation Provided |
Other / Varies |
|
24.5% |
16.3% |
7.5% |
4.8% |
50.3% |
10.2% |
Amounts of On-Call Compensation
Amounts of on-call
compensation for hourly and salaried are available in the
comprehensive version of this report.
Mobile Device and Telecom Service Provision
Most companies (92
percent) require on-call employees to carry a mobile device
(e.g., smartphone, mobile/cell phone, beeper/pager). Eighty-two
percent provide a mobile device to employees on call and pay 100
percent of the mobile telecom service expense (Table 5).
Only 6.5 percent of companies do not require employees on call
to carry a mobile device.
|
Table 5:
Mobile Device & Telecom Service
Provision |
|
|
Percent of Companies |
|
Company provides mobile
device and service plan
and pays 100% of the expense |
82.4% |
|
Employees purchase mobile
device and service plan and company reimburses a portion
of the expense |
5.6% |
|
Employees purchases mobile
device and service plan and company reimburses 100% of
the expense |
3.7% |
|
Mobile device not required
while on call |
6.5% |
|
Other / Varies |
1.9% |
Legal Considerations
The data provided in this report was collected from U.S. and
Canadian companies. Overall, the results did not reveal
significant differences in on-call pay practices between the
U.S. and Canada. However, it is worth noting that labor laws and
overtime pay requirements for time spent on-call can vary by
country and location (i.e., U.S. state, Canadian province).
Employers should consult with legal counsel on labor laws (e.g.,
FLSA) requiring overtime pay for “on-call time”.
Comprehensive
Report
In addition to
the data tables listed above, a comprehensive version of this report
includes the following data tables and breakouts:
-
On-Call
Pay Eligibility by Type of Job
Breakouts by Number of Employees, Industry Sector, and
Ownership for IT, Customer Service, and Facilities Job
Functions.
-
On-Call
Pay Eligibility by Job Level
Breakouts by Number of Employees, Industry Sector, and
Ownership.
-
Method of
On-Call Compensation
Breakouts by Number of Employees, Industry Sector, and
Ownership for Hourly and Salaried Employees.
-
Amount of
On-Call Pay for Hourly Employees
Overtime at X times base hourly pay rate and additional
flat amounts paid (USD) per weekday, weekend, holiday, and
week.
-
Amount of
On-Call Pay for Salaried Employees
Additional flat amounts paid (USD) per weekday, weekend,
and week.
Availability of Comprehensive
Report
-
Free to participants in 2010
On-Call Pay Practices Survey
-
Free to subscribers of
Culpepper Pay
Practices Survey Package
(includes Culpepper Library and Small
Company Plus subscribers)
-
$295 for non-participants and
non-subscribers (Order
Form)
Data Source: Culpepper On-Call Pay Practices Survey of
151 participating organizations.
Survey Dates: May 4, 2010 through June 17, 2010
Participants by Sector:
Technology 55%, Healthcare Services 11%, Life Sciences 8%, Other
27%
Participants by Number of Employees:
Up to 100: 13%, 101 to
500: 28%, 501 to 2,500: 28%, 2,501 to 5,000: 19%, Over 10,000:
13%
Participants by Ownership:
Public 42%, Private 39%,
Non-Profit: 15%, Other 4%
Participants by Country:
United States 95%, Canada 5%
Copying.
If you copy portions of
this report into your own publication, please cite your source
by including the following:
"Source:
Culpepper On-Call Pay Practices Survey,
July 2010,
www.culpepper.com"
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