Standby compensation
How on-call pay works in 2026
On-call pay compensates employees who must remain available to work outside their regular schedule. It has two components: standby pay (compensation for simply being available) and callback pay (compensation for actually responding to a call and performing work). The structure varies widely by employer — there is no federal on-call pay mandate.
Standby vs. callback
Standby pay is typically a reduced rate — commonly one-quarter to one-half of the regular hourly rate, or a flat daily amount ($25 to $75/day is common). Callback pay is usually at the full regular rate or higher, and often includes a minimum guarantee (e.g., 2 or 4 hours of pay per callback, even if the work takes less time). Some employers pay overtime rates for callback hours.
| Regular rate | Standby (25%, 24 hrs) | Callback (1x, 4 hrs) | On-call total |
|---|---|---|---|
| $25/hr | $150 | $100 | $250 |
| $30/hr | $180 | $120 | $300 |
| $40/hr | $240 | $160 | $400 |
| $50/hr | $300 | $200 | $500 |
Example weekly on-call premium: 24 standby hours at 25% of base + 4 callback hours at regular rate.
On-call and overtime
If on-call time counts as compensable hours worked, those hours count toward the 40-hour FLSA overtime threshold. Callback hours are always hours worked. An employee who works 40 regular hours and then is called back for 6 hours would be owed overtime (1.5x) on those 6 callback hours. Even if standby time is non-compensable, callback hours alone can push the total past 40.
Common on-call industries
Healthcare (nurses, physicians, technicians), IT infrastructure and DevOps, utilities (electric, gas, water), property maintenance, and emergency services are the most common on-call roles. Annual on-call premiums for these workers typically add $5,000 to $20,000 to base salary, depending on frequency and callback volume. Run the annualized figure through our paycheck calculator to see the after-tax impact.
Questions
On-call pay calculator FAQ
How is on-call pay calculated?
On-call pay varies by employer. The two most common structures are: (1) a flat daily or weekly standby rate, such as $50 per day just for being available, and (2) a reduced hourly rate for standby hours, such as one-quarter of your regular rate. When you are actually called in, you are typically paid at your full regular rate, or at overtime rates if the callback pushes you past 40 hours in the workweek.
Is on-call time considered hours worked under the FLSA?
It depends on how restricted you are. If you must remain on the employer's premises or so close that you cannot use the time for your own purposes, the FLSA considers it compensable hours worked. If you are free to go about your normal life and simply must be reachable and respond within a reasonable time, it is generally not compensable waiting time.
Does on-call pay count toward overtime?
If your on-call time qualifies as compensable hours worked under the FLSA, those hours count toward the 40-hour overtime threshold. Non-compensable standby time does not. Callback hours are always counted as hours worked, so they can trigger overtime if you have already worked 40 hours that week.
What is a typical on-call pay rate?
There is no federal standard. Common structures include a flat $25 to $75 per day of standby, or a fraction of the regular rate such as one-quarter to one-half pay for each standby hour. Healthcare, IT, and utilities workers are among the most common on-call roles, and rates vary significantly by industry and region.
Is on-call pay taxed differently?
No. On-call pay is taxed as regular wages. It is included in your gross pay and subject to federal income tax, Social Security (6.2% up to the $184,500 wage base in 2026), and Medicare (1.45%). There is no special tax rate for standby or callback compensation.
- Sources: U.S. DOL — FLSA on-call/waiting time guidance · IRS Rev. Proc. 2025-32 · SSA 2026 wage base $184,500.
- 🔄 Last updated July 25, 2026 · Tax year 2026
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