In light of recent severe weather events, employers with round-the-clock operations—such as those in healthcare and other essential services—are likely facing workforce coverage concerns. One common solution involves requiring or permitting employees to remain on-site overnight during hazardous travel conditions. While all hours actively worked must be compensated, a significant portion of extended on-site time may qualify as noncompensable sleep time under the Fair Labor Standards Act (FLSA).

• When an employee is required to be on duty for more than twenty-four hours, the FLSA allows employers to exclude up to eight hours of sleep time from compensable hours.
• This exclusion applies where: (1) there is an implied or express agreement to the exclusion; (2) the employer provides adequate sleeping facilities; and (3) the employee gets at least five hours of uninterrupted sleep.
• Nonexempt employees who are required to be on duty for fewer than twenty-four hours must be paid for all hours, even those spent sleeping.

The FLSA requires employers to pay nonexempt employees for all hours worked, and typically, any time that the employer requires employees to remain on-site counts as hours worked. But the FLSA regulations permit an employer to exclude up to eight hours of sleep time from compensable hours when an employee is required to be on duty for twenty-four hours or more, if the following requirements are met: (1) the employer and employee have an express or implied...

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