An employee arrives for an eight-hour shift. Business is slow, so a manager sends the employee home after one hour. Many employers assume they owe only the hour worked. In California, that assumption creates wage liability.

What Reporting Time Pay Is

Reporting time pay is a guarantee created by the Industrial Welfare Commission wage orders. California Labor Code section 1198 makes it unlawful to employ a person under conditions that a wage order prohibits. The Division of Labor Standards Enforcement (DLSE) treats reporting time pay as wages.

When It Is Owed and How to Calculate It

Each workday an employee is required to report and does report, but is not put to work or is given less than half of the usual or scheduled day's work, the employee must be paid for half of the usual or scheduled day. The pay may not be less than two hours or more than four hours, at the regular rate, which may not be below minimum wage.

• Eight-hour shift, one hour worked: half is four hours, so the employee is owed the one hour worked plus three hours of reporting time pay.
• Six-hour shift, two hours worked: half is three hours, so the employee is owed the two hours worked plus one hour of reporting time pay.

The two-hour minimum is not absolute. A shift or meeting scheduled for less than two hours may be treated differently, so confirm the facts before applying it.

If an employee is required to report a second time in the same workday and is given less than two hours of work, the employee must be paid for two hours. The DLSE takes the position that reporting time pay is not pay for hours worked, so it does not count toward overtime. Show it as a separate item in payroll.

What Counts as Reporting for Work

Reporting is not limited to showing up in person. A mandatory call-in before a shift may count as reporting for work, and logging in remotely or appearing at a client site can also qualify. Review any policy that requires employees to call, text, or check an app before a shift.

Exceptions

Reporting time pay is not owed when:

• Operations cannot begin or continue because of threats to employees or property, or when civil authorities recommend it.
• Public utilities fail to supply electricity, water, or gas, or there is a failure in the public utilities or sewer system.
• The interruption is caused by an Act of God or another cause outside the employer's control.

It also does not apply to an employee on paid standby status who is called in at a time other than the scheduled reporting time. The DLSE's position is that an employee who leaves by choice is not owed it.

Consequences

Unpaid reporting time pay can support a wage claim.

Waiting time penalties. California Labor Code section 203 applies when an employer willfully fails to pay wages due at termination, and the DLSE treats reporting time pay as wages. Courts have not settled whether section 203 applies to reporting time pay specifically, but employers should treat it as exposure, with penalties of up to 30 days of wages.

Because one scheduling practice often affects many employees, the exposure can grow quickly.

Common Mistakes

• Paying only for the time worked.
• Using call-in scheduling without review.
• Assuming an exception applies without checking the facts.
• Applying one rule to every position, when the governing wage order depends on the industry.

Reporting Time Pay Compliance Checklist

• Identify the wage order that applies to each position.
• Review send-home, on-call, and call-in practices.
• Train managers that sending an employee home early can create a payment obligation.
• Give cancellation notices as early as possible and keep records of when they were sent.
• Record reporting time pay as a separate payroll item.
• Document the reason for any shortened or canceled shift.
• Audit past schedules for shortened shifts that were paid only for time worked.

Frequently Asked Questions

Does the employee have to show up in person?
Not necessarily. A mandatory call-in or remote log-in may count as reporting.

Do I owe it if I cancel before the employee arrives?
It depends on the notice and on any call-in requirement. Document when and how you gave notice.

What do I owe if an employee works two hours of a six-hour shift?
Half of the shift is three hours, so the two hours worked plus one hour of reporting time pay.

Does it count toward overtime?
The DLSE takes the position that it does not.

Can it lead to waiting time penalties?
Possibly. Unpaid reporting time pay is treated as wages, and section 203 penalties apply to willful nonpayment of wages at termination. Courts have not settled the point for reporting time pay specifically, so treat it as exposure.

What You Should Do Now

Review how your business schedules, sends home, and cancels shifts, starting with any call-in procedure and any manager who can send employees home early. Confirm the governing wage order for each position, and have payroll record reporting time pay separately.

If you want help reviewing your scheduling practices and payroll records for reporting time compliance, I can help. Schedule a consultation today.

Schedule a Consultation: https://www.chukwuekelaw.com/contact-us

Disclaimer: This post is for informational purposes only and does not constitute legal advice or create an attorney-client relationship. The information in this post reflects the law as understood at the time of publication. Statutory details, including specific requirements, penalties, and coverage thresholds, should be verified against the enacted text and any applicable agency guidance.