Notes from the Payroll Prof
by Roger A. Smith, CPP & Payroll Consultant
“Engaged to be Waiting” or “Waiting to be Engaged?”
No, it’s not payroll doubletalk. It’s a concept payroll professionals need to understand. As a member of the American Payroll Association’s Certification Board, I’m often asked about payroll concepts included in the CPP exam subject matter. One that frequently confuses test takers is the difference between “engaged to wait” and “waiting to be engaged.”
Time spent “engaged to wait” (also referred to as “engaged to be waiting”) is a short amount of time, usually spent on the employer’s premises, required by the employer and insufficient for the employee to use for his or her own purposes. Examples include a service desk employee who reads a book while waiting for a call, a courier who works a crossword puzzle while awaiting assignments, a firefighter who plays cards while waiting for alarms, or a repair technician who makes personal cell phone calls while waiting for his employer’s customer to grant him admission to the premises. Time spent “engaged to wait” is compensable under Federal Wage & Hour laws.
Conversely, when an employee is completely relieved from duty and is able to use the time effectively for his own purposes he is “waiting to be engaged.” An employee who has been told his services are not needed and is free to go (whether or not he leaves the employer premises) is waiting to be engaged, but not working.
A specific example from the regulations (Wage & Hour Reg. 29, § 785.16) may help clarify:
“A truck driver who has to wait at or near the job site for goods to be loaded is working during the loading period. If the driver reaches his destination and while awaiting the return trip is required to take care of his employer’s property, he is also working while waiting. In both cases the employee is engaged to wait. Waiting is an integral part of the job. On the other hand, for example, if the truck driver is sent from Washington, DC to New York City, leaving at 6 a.m. and arriving at 12 noon, and is completely and specifically relieved from all duty until 6 p.m. when he again goes on duty for the return trip the idle time is not working time. He is waiting to be engaged.”
The way I remember the difference is that if you’re “engaged to wait,” you are engaged (employed) and the waiting is part of the job your employer is paying you for. If you’re “waiting to be engaged” you are simply waiting for your job responsibilities to begin. Make sure that you are properly compensating employees who are “engaged to wait” rather than “waiting to be engaged.”
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By the way, how are you doing on your New Year’s SMART Objectives? Those of you who read last month’s column know that I recommended monthly SMART objectives, rather than annual New Year’s Resolutions. Well, I took my own advice and decided to start losing weight by having a SMART objective to lose two pounds a month – one month at a time. I’ve met my January objective. Something tells me this may get a bit harder in the coming months!
As always, if you have any questions or comments, my email address is Roger.Smith@PayrollProf.com
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