Non-Exempt Employee Scheduling: What California Employers Need to Know About Reporting Time Pay

Scheduling employees to ensure the right amount of coverage to meet business needs without overstaffing can be challenging. Despite careful planning, needs can change quickly, prompting employers to send non-exempt employees home early because business is slow or call them back to work to cover for someone who has called in sick.

Situations like these can trigger unexpected wage and hour requirements, including “reporting time pay.” Employers should be aware of the following reporting time pay rules:

Extra Pay may be Required When Employees are Sent Home Early

California’s Wage Orders require “reporting time pay” for non-exempt employees when employees report for their regular shift, but are provided less than half of their scheduled shift. Employees must be paid at least half their scheduled hours—never less than 2 hours or more than 4 hours.

• Example: Employee is scheduled to work 8 hours and is sent home after 3 hours. They are owed a total of 4 hours (or put another way, three hours of pay for hours worked and one hour of reporting time pay).

Key Issue 1: Was Work “Scheduled”?

When work is scheduled, the minimum two-hour pay requirement applies only if the employee is furnished work for less than half the scheduled time.  For example, an employee can be scheduled to come in for one-hour meetings every week.  If the meeting lasts at least one-half an hour, reporting time pay is not due.

When work is not scheduled, such as when an employee is called in on a day off, with no specified number of hours, the employee receives at least 2 hours of pay.

Key Issue 2: Did the Employee “Report” for Work?

Reporting to work can include physically coming to the workplace or client site, starting on a trucking route, or logging on to a computer remotely, but there is not an exhaustive list. An employee who is required call-in before a shift to see if they are needed can also be reporting to work. The closer that an employee is required to call in prior to the start of the shift to find out if they are scheduled (i.e., night before, day of, etc.), the more likely reporting time pay will be owed. A California Appellate Court determined that requiring employees to call-in 2 hours prior to start of a shift to find out if they are scheduled to work that day triggered reporting time pay requirements.

Key Issue 3: Does an Exception Apply?

Exceptions to reporting time pay include when:

• Operations cannot commence due to threats to employees or property, or when recommended by civil authorities.
• Public utilities fail to supply electricity, water, or gas or there is a failure in the public utilities, or sewer system
• The interruption of work is caused by an Act of God or other cause that is not within the employer’s control.

Employers also do not have to worry about reporting time pay when an employee voluntarily leaves early or when an employee is on paid standby.

Extra Pay may be Required When an Employer is Called into Work a Second Time

Reporting time pay is also required when employees are required to report to work a second time in any one workday. In that case, employees must be paid for at least 2 hours.

• Example 2: Employee is scheduled to work from 8 am until 12 pm for the day (four hours). Employee leaves at 12 pm but is asked to come back to cover part of the afternoon shift, from 3 pm to 4 pm (one hour). The employee is owed a total of 6 hours (or put another way, five hours of pay for hours worked and one hour of reporting time pay).

*In this case, an employee making at or near minimum wage may also be entitled to a split shift premium.

Don’t Forget City and County Requirements

Some cities and counties, including San Francisco, Emeryville, Berkeley, Los Angeles, and Los Angeles County (beginning July 1, 2025), have “predictive scheduling” ordinances which include (among other requirements) employer obligations to post schedules in advance (e.g. 2 weeks), and penalties for late changes. These ordinances are typically industry-specific and apply when the employer has a certain number of locations and/or employees. Employers operating in a city or county with such an ordinance should determine whether they are covered and the exact requirements, which are in addition to state laws.

California employers have a lot to think about when scheduling their non-exempt employees. Recognizing everyday situations that may require additional pay or other obligations is key to compliance.

Consider CEA’s Wage and Hour Audit: PAGA Prevention Package to help you with these and other wage and hour issues.