As law firms expand their geographic footprints, serving multiple time zones can be a significant problem. Having technology, HR or accounting staff available in the middle of the night for problems that may occur during the business day half-way around the world causes many firms to require employees to be available 24-7.   We did a mini-survey of law firms to see how they handle compensation for this level of availability. 

 

First the law – according to the U.S. Department of Labor, the need to pay nonexempt employees overtime depends on whether they are “waiting to be engaged” or are “engaged to wait.” At issue is whether the employees are free to use their time freely, e.g., an employee who must be at a designated place (at work or at home) is not able to use their time freely and would probably be judged to be eligible for overtime. An employee who is asked to wear a pager or carry a cell phone but is otherwise unlimited would not. (Please verify this with your labor attorney to assure applicability).

Our survey found that most employees expected to be on call were exempt and being available for consultation was, of course, not subject to overtime. Every firm we talked to considered being on call to be a routine part of management responsibilities; however, several firms indicated that frequency of work outside the normal work day was specifically considered in bonus determination. A number of firms indicated that special cash bonuses were given to employees who were called in frequently during computer conversions, office moves, merger implementation and similar situations. About one-third of firms provided a cell phone or reimburse employees for its use. Every firm we talked to provides employees with a Blackberry type device.