According to California Labor Law if an employer sends its hourly, nonexempt employee home before the end of a shift, that employee may be entitled to additional compensation, known as “reporting time pay.”
Section 5 of the California Industrial Welfare Commission IWC wage order, provides that when an employee reports to work but is not allowed to work or completes less than half of a shift (half shift is calculated at four hours) before being released for the day then the employer must pay that worker for at least one-half of that day’s pay.
Section 5(B) of the wage order provides that if the employer calls the employee back to work that day and only allows the employee to work less than two hours then the employer must pay its employees an additional two hours of pay.
There are a number of exceptions as follows:
1. Company operations don’t start or cease due to threats to employees or property
2. There is a failure of public services (electricity, water, etc.)
3. Natural disaster, etc. “not within the employer’s control.”
An employee will not qualify for additional compensation under this rule if he or she is not able or capable to work or if the employee came to work late or was fired or sent home as a disciplinary action.
Reporting time pay for hours in excess of the actual hours worked may not be counted as hours worked for purposes of determining overtime compensation.
These rules do not apply to workers who are exempt and paid a salary in that a salaried employee receives his or her full salary regardless of hours worked.
If you have experienced being released from work early and therefore you have not been paid a minimum of four hours, you may demand your unpaid minimum hours (“reporting time pay”).
If you have any questions it is advisable that you contact a California employment attorney to review your situation.
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