BREAKING: Marathon Pays $9 Million for Unpaid On-Call Time - Workers Win Big

A major victory for workers’ rights has emerged from a $9 million class action settlement between Marathon Petroleum Corporation and refinery workers who were denied proper compensation for on-call shifts. This landmark case highlights a critical issue affecting thousands of workers across industries: when employers must pay for time spent “on-call.”

The Marathon Settlement: What Happened

According to reports from hcamag.com, Marathon Petroleum agreed to settle a class action lawsuit for $9 million over allegations that the company failed to properly compensate refinery workers for on-call time. The lawsuit centered on workers who were required to remain available for emergency calls and respond to workplace incidents outside their regular shifts, but were not adequately compensated for this constrained time.

The settlement represents a significant acknowledgment that workers deserve fair compensation when their personal time is restricted by employer demands, even when they’re not actively performing work duties at the workplace.

Understanding On-Call Time and Wage Rights

What Constitutes Compensable On-Call Time?

The distinction between compensable and non-compensable on-call time has been a contentious area of employment law. Generally, workers must be paid for on-call time when:

• They must remain at or near the workplace
• Response time requirements are so restrictive that personal activities are significantly limited
• Geographic restrictions prevent normal personal activities
• The frequency of calls substantially interferes with personal time

In the Marathon case, refinery workers likely faced stringent response time requirements due to the critical nature of petroleum operations and safety concerns, making their on-call time compensable under federal and state wage laws.

Federal and State Protections

Under the Fair Labor Standards Act (FLSA), employers must pay at least minimum wage for all hours worked, including certain on-call time. When on-call time is deemed “hours worked,” it must also be included in overtime calculations.

California workers enjoy even stronger protections under state labor laws. California’s Industrial Welfare Commission wage orders require payment for “reporting time” and have strict rules about when on-call time must be compensated. The state’s approach generally favors workers when determining whether restricted time should be paid.

New York workers are protected under similar principles, with state labor laws requiring payment for time when employees are “suffered or permitted to work” or when their freedom is substantially restricted by employer demands.

Industries Most Affected by On-Call Wage Issues

The Marathon settlement shines a light on widespread on-call compensation problems across multiple industries:

Healthcare Workers

Nurses, technicians, and other healthcare professionals frequently face mandatory on-call requirements with strict response times, particularly in emergency departments and surgical units.

Utilities and Energy

Power plant operators, gas pipeline workers, and refinery employees often maintain on-call schedules to respond to emergencies that could affect public safety.

Information Technology

System administrators and IT support staff may be required to remain available for server emergencies and system failures outside regular business hours.

Manufacturing and Production

Workers in facilities with continuous operations or hazardous materials often face on-call requirements for equipment failures or safety incidents.

Red Flags: Signs Your On-Call Time Should Be Compensated

Workers should be alert to these warning signs that their on-call time may be improperly uncompensated:

• Strict response time requirements (must report within 30 minutes or less)
• Geographic restrictions preventing travel beyond a certain radius
• Frequent calls that regularly interrupt personal time
• Required sobriety or other lifestyle restrictions while on-call
• Mandatory availability during specific hours or days
• Equipment requirements such as carrying company phones or radios

The Broader Impact: Class Action Power

The Marathon settlement demonstrates the power of class action lawsuits in addressing systematic wage violations. When employers deny proper compensation to entire groups of workers, individual employees often lack the resources to challenge these practices alone.

Class actions level the playing field by allowing workers to pool resources and hold large corporations accountable for wage theft. The $9 million settlement likely represents compensation for hundreds or thousands of refinery workers who experienced similar on-call time violations.

What This Means for California and New York Workers

California’s Strong Worker Protections

California’s labor laws provide some of the strongest protections in the nation for on-call compensation. The state’s approach considers factors like:

• The degree of restriction on personal activities
• Geographic limitations imposed by employers
• Response time requirements
• Frequency of actual calls received

California workers facing similar on-call situations should understand that they may have strong claims for unpaid overtime and off-the-clock work violations.

New York Worker Rights

New York’s labor laws similarly protect workers from on-call time violations. The state’s Department of Labor has issued guidance clarifying when on-call time must be compensated, generally favoring payment when workers’ freedom is substantially restricted.

Taking Action: Steps for Affected Workers

If you believe your employer has failed to properly compensate you for on-call time, consider these steps:

Document Everything

• Keep detailed records of on-call schedules and requirements
• Track response time mandates and geographic restrictions
• Note frequency and duration of actual calls received
• Save all communications about on-call policies

Understand Your Rights

Familiarize yourself with federal FLSA requirements and your state’s specific protections. Both California and New York have robust mechanisms for recovering unpaid wages.

Consider Legal Action

Wage and hour violations often affect multiple workers similarly, making class action lawsuits an effective remedy. Individual claims are also viable under both federal and state laws.

Lessons from the Marathon Settlement

The $9 million Marathon settlement sends a clear message to employers: workers deserve fair compensation for restricted time, even when not actively performing job duties. This case reinforces several key principles:

1. On-call time restrictions can create compensable hours worked
2. Employers cannot avoid wage obligations by labeling time as “standby” or “on-call”
3. Class action lawsuits remain powerful tools for addressing systematic wage violations
4. Workers in safety-sensitive industries often have strong on-call compensation claims

Preventing Future Violations

Employers should take note of this settlement and review their on-call policies to ensure compliance with wage and hour laws. Workers should understand their rights and be prepared to challenge improper compensation practices.

The Marathon case also highlights the importance of industry-specific analysis. Refinery operations, like many industrial facilities, require rapid emergency response that significantly restricts workers’ personal time during on-call periods.

Moving Forward: Worker Empowerment

This settlement represents more than just monetary compensation—it validates workers’ rights to fair pay for restricted time and demonstrates that even large corporations must respect wage and hour laws.

For workers currently facing similar on-call compensation issues, the Marathon settlement provides encouraging precedent that these claims can succeed. Whether through individual lawsuits or class actions, workers have legal avenues to recover unpaid wages for improperly compensated on-call time.

Get Help with Your On-Call Wage Claim

If you’re a worker in California or New York who believes your employer has failed to properly compensate you for on-call time, you may have a viable wage and hour violation claim. The experienced employment attorneys at our firm understand the complexities of on-call compensation laws and can help you recover unpaid wages.

Don’t let employers take advantage of your dedication and availability without proper compensation. Contact us today for a free case evaluation to discuss your rights and potential legal remedies. Time limits apply to wage claims, so it’s important to act quickly to protect your interests.

Workers deserve fair compensation for all time controlled by their employers—including restrictive on-call periods. The Marathon settlement proves that these rights can be enforced, and we’re here to help you fight for the wages you’ve earned.