When Is On-Call Time Compensable Under the FLSA?
What qualifies as “working time” under the Fair Labor Standards Act (FLSA) has been addressed in many cases. One recurring issue is whether on-call time counts as compensable hours worked for which the employee must be paid wages. In Barnes v. Omnicell, the Tenth Circuit reaffirmed a long-standing principle that on-call time is not compensable under the FLSA unless the employer imposes such severe restrictions that the employee cannot use the time effectively for their own purposes.
Case Background: FLSA Overtime Pay Dispute and On-Call Compensation Claim
Larry Barnes was employed by Omnicell, Inc. as a Senior Technical Service Engineer. His position involved remote troubleshooting and telephone support for automated medical supply systems used by hospitals.
Barnes worked a standard 40-hour week. However, he was also allegedly on call 24/7 and expected to respond to and hadle after-hours work requests at any hour. He claimed these on-call duties limited personal time and amounted to continuous employment, entitling him to overtime pay under the FLSA.
Barnes sought over $2 million in unpaid overtime wages, asserting that his on-call responsibilities rendered him “engaged to wait,” not merely “waiting to be engaged” — a key distinction in FLSA compensable time analysis.
United States District Court Ruling: FLSA On-Call Pay Exemption Clarified
The U.S. District Court for the District of Colorado granted summary judgment in favor of Omnicell, finding that Barnes’ on-call time was not compensable time under the FLSA, for the following reasons:
- Barnes had no fixed response time requirements and could delay responding to some calls for hours.
- He was not required to remain at a specific location during on-call hours or refrain from personal activities.
- The volume of after-hours on-call activity was relatively low, and the inconvenience was minimal.
Tenth Circuit’s Clarifies When On-Call Hours Count as Work Time Under the FLSA
On appeal, the Tenth Circuit affirmed the District Court’s opinion and agreed that Barnes’ on-call time was not compensable under the FLSA.
The Court emphasized the following factors for determining whether on-call time qualifies as compensable work time and additional wages could be owed to the employee:
- Geographic Restrictions: Was the employee required to stay in a specific location while on call?
- No. Barnes could be anywhere with phone access.
- Response Time Requirements: Did the employee need to respond immediately to calls?
- No. He often had hours to respond, and emergencies were rare.
- Call Frequency and Nature: Were calls frequent enough to meaningfully interfere with personal time?
- No. The calls were infrequent, and most issues were resolved remotely.
- Ability to Use Time for Personal Purposes: Was the employee’s personal freedom significantly constrained?
- No. Barnes could engage in personal activities during on-call hours, travel, and sleep without interruption.
- Whether the On-Call Time Was Spent Predominantly for Employer’s Benefit:
- The Court found that although Barnes was available, he was not substantially restricted or engaged in employer-directed duties for Omnicell’s benefit during most of his on-call hours.
The Court also emphasized that an employee’s subjective inconvenience or stress does not make on-call time compensable under the FLSA unless there is an objectively severe restriction on freedom.
“The fact that Mr. Barnes felt as though he was always on duty is not dispositive under the FLSA. The relevant inquiry is whether the employer’s restrictions so limited his use of time that it became work.”
FLSA Compliance Tips: Managing On-Call Employee Policies Effectively
- Design On-Call Policies Carefully: Ensure that employees are not required to remain on premises or respond immediately while on call unless they are being compensated for on-call time under the FLSA.
- Minimize Restrictions: Avoid unnecessary geographic limitations or response requirements. The more freedom employees have during on-call hours, the less likely the time will be considered compensable work time.
- Document On-Call Expectations: Establish clear policies about on-call response time, duties, and employee availability during standby hours to help defend against unpaid wage claims under the FLSA.
- Use Legal Precedent to Audit Practices: This case can serve as a template for on-call FLSA compliance reviews, especially for IT support staff, healthcare, and emergency support workers who often handle remote on-call duties.
Know Your Rights: On-Call Compensation Under the FLSA for Employees
- Understand the Limits of On-Call Compensation: Merely being reachable or on standby does not automatically entitle you to FLSA overtime pay or on-call wages.. The law requires clear, objective restrictions on employee time to qualify as compensable work hours.
- Track Restrictions: Keep records if your employer imposes strict response time rules or geographic limitations during on-call shifts (e.g., you must remain within 15 minutes of work or answer within 5 minutes). These facts may support a claim for unpaid overtime wages under the FLSA.
- Evaluate Frequency and Impact: If your on-call duties are frequent, disruptive, or severely limiting, you may have a valid wage and hour claim under FLSA. But generalized inconvenience or stress is not enough.
Final Word on FLSA On-Call Pay Laws from Barnes v. Omnicell
Barnes v. Omnicell is a decisive win for employers seeking clarity on FLSA compliance for on-call employees. The ruling reinforces that not all standby time qualifies as compensable hours — even if the employee feels “always on.”
For on-call time to qualify as compensable under the FLSA, the restrictions must be so severe that the employee is effectively at work, even while not actively performing job duties. This case provides essential guidance for both employers and employees navigating wage and hour law in on-call contexts.
Need Help?
If you have questions about on-call policies, overtime obligations, or wage and hour compliance under the FLSA, contact Baird Quinn’s employment law team for a consultation.