Situation: A disaster recovery business responds to calls from [potential] clients who have had a "disaster" damage their home - for example, a pipe burst and caused a flood, or the cat knocked over a halogen lamp causing fire damage in the living room, or a hurricane has broken a window and damaged a room. Business has picked up and this small, 2-person company decides to hire a new employee.

This new employee will staff an office from 9-5 M-F and take calls 24/7 from people who have had a disaster. The new employee will keep track of invoices, billing, payments, etc. The new employee would need to carry a mobile phone and answer calls that could arise 24 hours a day / 7 days a week.

Your friends know you've taken an employment law course and ask you for help.

Draft a memo setting forth the legal responsibilities (if any) towards this person.

1. Discuss in detail, in relation to both federal and a specific state law, if the company has to pay the new employee by the hour for each hour they carry the mobile phone?

2. What does being "on call 24/7" really mean?

3. What can or cannot the new employee do while on call 24/7?

Support your conclusions in 1-3 with federal and specific state law.