How Should We Structure On-Call Compensation?

A Contractor University Member recently utilized the Ask-The-Expert Q&A feature within the member dashboard by submitting the following question and received the response below.

Contractor Question:

“What’s the best way and pay rate to pay employees to be on call after hours and weekends? Should we pay an hourly rate to wait then commission for what they charge?”

Contractor University Expert Response:

“There’s no single “right” way to pay for on-call work.

Here’s how we handle it:

Flat Fee for Availability – We pay a set daily amount just for being on call (including the requirement to remain sober and available).

Overtime for After-Hours Calls – If they actually get called out after hours, we pay overtime rates for the time worked.

Commission – Since our techs are paid hourly plus a 10% commission, they receive overtime pay plus the 10% commission on any sales during those calls.”

Contractor University members can click here to log in to their member dashboard and submit a question through the Ask the Expert portal.