Travel Time: When Does It Count As Work Hours?

Travel time pay is a complex issue for employers, and it can be confusing to determine when travel is considered work time and when employees are legally entitled to be paid for it. This is especially true when it comes to salaried employees, who typically receive a fixed salary intended to compensate them for all working hours, including business-related travel. However, there are situations where travel time may be considered work time for salaried employees, and understanding these scenarios is crucial for employers to ensure compliance with applicable laws and fair compensation for their employees.

Travel time is different from break or meal time

Travel time, rest breaks, and meal breaks are treated differently when it comes to compensating employees for their time. While travel time during normal work hours is generally considered compensable work time, this does not apply to an employee's regular commute to and from their usual work site. This type of travel is typically not counted as compensable work hours.

On the other hand, rest breaks and meal breaks are treated differently. Rest breaks of short duration, usually 20 minutes or less, are often considered paid working time as they promote employee efficiency. Bona fide meal breaks, typically 30 minutes or longer, are generally not considered compensable work time, provided that employees are completely relieved from their duties during this period.

However, the situation becomes more complex when employees are required to travel to a designated break area during their meal break. In the case of Naylor, et al. v. Securiguard, Inc., et al., the Fifth Circuit Court found that if the travel time to and from the break area significantly reduces the employee's ability to use the meal break for their own purposes, it may be considered compensable time.

Additionally, certain types of travel time must be compensated. This includes travel that is considered part of an employee's principal working duties, such as travelling between multiple offices or job sites during the workday. Travel away from the employee's home community, especially when it overlaps with regular working hours, is also generally considered compensable work time.

Therefore, while travel time, rest breaks, and meal breaks have distinct considerations, they all play a role in determining the compensation and work hours of employees.

Special one-day assignments

When it comes to compensating employees for special one-day assignments, there are a few key considerations:

Travel Time

Employers should address compensation for travel time in their policies. For salaried employees, travel time to and from the special assignment location may be considered work time and included in the total hours worked for the day. However, the normal daily commute time can usually be deducted from the total travel hours, as it is not typically considered compensable.

Time at the Destination

In addition to travel time, employees may be compensated for the time spent at the destination completing work-related tasks. This could include attending meetings, conferences, or other work-related events. This time would typically be included in the total hours worked for the day.

Accommodations

For overnight stays or extended trips, employers should also consider providing accommodations for their employees. The cost of accommodations may be covered by the company, and this time may be included in the total hours worked for compensation purposes.

Company Policies and Legal Requirements

It is important for employers to establish clear and transparent policies regarding special one-day assignments and travel time compensation. These policies should be communicated effectively to employees to avoid confusion and ensure fair compensation practices. Additionally, employers should be aware of any legal requirements or regulations, such as the Fair Labor Standards Act (FLSA) in the United States, which may impact their compensation practices for salaried employees.

Overall, special one-day assignments can be an important aspect of an employee's work, and it is crucial to ensure that their time and efforts are appropriately recognised and compensated. By establishing clear policies and staying informed about relevant legal frameworks, employers can effectively manage special one-day assignments and provide fair compensation for their salaried employees.

Travel away from home

However, if an employee is a passenger on a plane, train, boat, bus, or in an automobile, and the travel takes place outside of their normal working hours, this time might not be considered compensable. If the employee is not required to work and does not perform any work during this travel time, it is not counted as work hours.

For example, if an employee is travelling to an overnight stay and has the option to use public transportation but chooses to drive their own vehicle, the employer can choose to pay for all the time spent travelling or only pay for the travel time that occurs during normal work hours.

It's important to note that state laws in the US may vary from the Fair Labor Standards Act (FLSA) in their requirements on this issue. For instance, California considers compensable travel time any time longer than the employee's usual daily commute, including overnight trips, and must be paid at regular or overtime rates, but not less than the minimum wage rate.

Exempt and non-exempt employees

For exempt employees, travel time is treated differently. Exempt employees receive a fixed salary regardless of their travel time and are generally not entitled to additional compensation for travel. This includes executive, administrative, professional, computer, and outside sales employees.

Non-exempt employees, on the other hand, are entitled to be paid for their travel time. This includes both hourly and salaried employees. For non-exempt employees, work-related travel time—excluding their regular commute to and from work—should generally be compensated and included in the calculation of overtime.

There are several scenarios to consider when determining whether travel time is compensable for non-exempt employees:

• Commuting: Regular commuting time from home to the primary workplace is generally not considered compensable work hours.
• Special one-day assignments: When employees travel to a non-typical work location and back in a single day, the excess travel time beyond their normal commute is usually considered compensable.
• Travel away from home: Employees should be compensated for all time spent travelling during regular business hours. For non-working days, they should be paid for any work performed while travelling, such as answering work emails or doing research.
• Travel as part of principal working duties: Non-exempt employees who travel as an integral part of their job, such as an account executive travelling between offices or a delivery driver, should be compensated for this time.

Additionally, it is important to note that travel time is distinct from break or meal time. According to the US Department of Labor, any break lasting less than 20 minutes, or a longer break during which the employee is not fully relieved of duties, must be paid. If an employee is required to travel during their break or lunch period, that travel time is considered work-related and must be compensated.

To summarise, exempt employees generally do not receive additional compensation for travel time, while non-exempt employees are entitled to be paid for their work-related travel, excluding their regular commute.

Calculating work travel time

Understanding Travel Time Pay

Firstly, it's important to understand what constitutes travel time pay. In general, travel time pay refers to payment for the time an employee spends travelling to perform professional activities requested by their employer. This typically includes travelling to and from customer locations or different work-related sites, but not an employee's regular commute to and from their primary workplace. Exempt employees, such as those in executive, administrative, or professional roles, are generally not entitled to additional compensation for travel time. On the other hand, non-exempt employees, including both hourly and salaried workers, are typically entitled to compensation for work-related travel time.

Factors Affecting Compensation

When determining compensation for work-related travel, several factors come into play:

• Distance travelled: The distance between different work locations or customer sites can vary, and this can impact compensation.
• Company policies: Each company may have its own policies regarding travel time compensation, which should be clearly communicated to employees.
• Special assignments: If an employee travels for a specific project, meeting, or event outside their regular commute, this is typically considered a special assignment, and guidelines should address compensation for travel time and time spent at the destination.
• Overnight stays: When travel involves overnight stays, employers should compensate employees for all time spent travelling during regular business hours. This includes non-working days as long as the employee is still on the business trip. However, if the employee is a passenger and does not perform any work during travel, this time may not be compensable.
• Meal and break times: Travel time during an employee's meal or break period is generally treated as part of their overall paid travel time if it occurs during their regular work hours.

Calculation Methods

• Drive time calculators: Online tools, such as drive time calculators, can help estimate the total time needed for a trip, including breaks and fuel costs. These calculators use factors such as distance, average speed, and fuel consumption to provide an estimated time of arrival and total driving duration.
• Hourly rate: Employers can calculate pay for travel time based on the applicable hourly rate. If travel occurs during regular work hours, it is typically paid at the standard rate, while travel outside of regular hours may qualify for overtime pay.
• Different pay rates: Employers can pay a different rate for travel time, as long as it complies with applicable labour laws and remains above the minimum wage.

Record-Keeping

It is essential for employers to maintain accurate records of employees' travel time, including start and end times, destinations, and any breaks taken. Clear documentation ensures compliance with labour laws and provides transparency in compensation.

Frequently asked questions