3. Bunkhouse Rule

Bunkhouse Rule

Concept

An employee’s stay in an employer-provided bunkhouse is not, by itself, hours worked. The question is whether, during that time, the employee is required to be on duty or at the employer’s disposal, rather than free to use the time for personal purposes. (Labor Code, Article 84)

Governing provisions

The Labor Code counts as hours worked all time during which an employee is required to be on duty or at a prescribed workplace, and all time during which the employee is suffered or permitted to work. The implementing rules also address waiting time and the circumstances in which it is compensable. (Labor Code, Article 84) (Omnibus Rules Implementing the Labor Code, Book III, Rule I)

Requisites / Rules

• Mere lodging is not work. Providing a place to sleep does not automatically make every hour spent there compensable. Apply the hours-worked test to what the employee is required to do during the period claimed. (Labor Code, Article 84)
• Required duty counts. Time spent actually performing assigned tasks counts as hours worked, even if the tasks are performed in or near the bunkhouse. Work that the employer suffers or permits also counts. (Labor Code, Article 84)
• Waiting may count. Waiting time is compensable when waiting is an integral part of the job or the employer requires the employee to wait. The practical inquiry is whether the employee can use the interval effectively for personal purposes. (Omnibus Rules Implementing the Labor Code, Book III, Rule I)
• Examine restrictions, not labels. A requirement to remain available for immediate assignments may make an otherwise idle period working time. Conversely, being housed near the worksite does not alone establish that the employee is on duty throughout the stay. (Labor Code, Article 84) (Omnibus Rules Implementing the Labor Code, Book III, Rule I)

Distinctions

Residence versus duty: The bunkhouse describes where the employee stays; it does not determine when work begins or ends. Separate time spent resting or attending to personal matters from time spent working or waiting under the employer’s required control. (Labor Code, Article 84) (Omnibus Rules Implementing the Labor Code, Book III, Rule I)

Bar tip

Do not count a whole bunkhouse stay as work—or exclude it wholesale. Identify the claimed hours, the duties and restrictions during those hours, and whether the employee could use the time as their own. (Labor Code, Article 84) (Omnibus Rules Implementing the Labor Code, Book III, Rule I)