Travel Time: Workday Business Or Leisure?

Business travel is a common feature of modern work life, but it's not always clear whether this time is considered part of the working day. The answer depends on several factors, including the type of travel, the time of travel, and the nature of the work being done. Travel time may be considered working time if it occurs during regular working hours or if the employee is required to work while travelling, such as driving a vehicle or performing work-related tasks. However, commuting time is generally not considered working time, even if the employee performs some work-related activities during the commute. When it comes to business trips, only certain activities, such as meetings or work-related events, are officially regarded as work time. Understanding the regulations surrounding travel as part of the working day is essential for both employers and employees to ensure compliance with labour laws and fair compensation.

Travel time as overtime

Federal Laws and the Fair Labor Standards Act (FLSA):

The Portal-to-Portal Act of 1947 provides guidance on when workdays start and end, defining a compensable workday and establishing rules for employers. The Fair Labor Standards Act (FLSA) of 1938 also sets guidelines that companies must follow. According to the U.S. Department of Labor, time spent traveling during normal work hours is generally considered compensable work time. This includes travel between different work sites or assignments during the workday.

State Laws:

State laws can also dictate whether travel time is considered overtime. For example, in California, employees are entitled to be paid for all "hours worked." This includes time when actual work is performed, such as sending emails or making work-related calls, as well as time when the employee is "subject to control" of the employer, even if they are not actively working.

Nature of Travel:

The nature of the travel also determines whether it qualifies as overtime. Travel that occurs within an employee's regular working hours or requires them to work while traveling (e.g., driving a loaded truck) is more likely to be considered overtime. Additionally, travel away from the employee's official duty station that involves overnight stays or unusual and arduous conditions may also be considered overtime.

Employer-Provided Transportation:

When an employer provides mandatory transportation to a job site, this travel time may be considered overtime. However, if the employer provides optional transportation that employees can choose to use, then this travel time is typically not compensable.

Commuting Time:

Normal commuting time between an employee's home and their regular workplace is generally not considered overtime. However, if an employee is required to travel to a temporary duty location or a different workplace that significantly increases their commute time, this additional travel time may be eligible for overtime pay.

Special Assignments and Travel Between Workplaces:

If an employee has to travel to a different work location for a special assignment, and this travel time exceeds their normal commute, the additional time may be considered overtime. Similarly, if an employee is required to travel between multiple workplaces in the same day, this travel time is typically considered part of their working hours and may qualify for overtime pay.

It's important to note that the eligibility for overtime pay can vary based on whether an employee is exempt or non-exempt from the FLSA, and different states may have their own specific regulations. Employees should carefully review their employment contracts and consult with legal professionals to understand their rights regarding travel time as overtime.

Travel as part of principal working duties

Travel is an essential part of some jobs. For instance, tour guides, flight attendants, pilots, and travel writers travel as part of their principal working duties. The amount of travel may depend on the company, job duties, and industry. Some travel jobs require minimal travel, while others require employees to travel regularly.

Employees are entitled to be paid for some of their travel time, but not all of it. The right to get paid for travel time depends on whether the employee stays overnight, their regular work hours, and their commute to the airport or other travel hub. Travel time pay refers to compensation for employees for time spent traveling for work-related purposes, such as meetings, conferences, or training sessions.

For employees covered by the Fair Labor Standards Act (FLSA), travel time is considered hours of work if the employee is required to travel during regular working hours, or if they are required to work while traveling, such as by driving a government vehicle as part of a work assignment.

In the context of work-related travel, employers are responsible for providing accommodations and alternative methods of transportation for employees with disabilities or impairments. For example, an employer might need to provide a sighted guide for a blind employee traveling to a conference or arrange for accessible transportation for an employee who uses a wheelchair.

Additionally, when an employee is required to travel for a one-day assignment in another city, all travel time to and from the destination, excluding the regular commute time, is counted as time worked and must be paid.

Commuting on special assignments

Whether or not travel is considered part of a working day depends on several factors, and this is also true when it comes to commuting on special assignments. Here are some guidelines and considerations for when employees are commuting on special assignments:

Overnight Trips

If an employee is required to travel away from their regular worksite and stays overnight, their travel time may be considered work time, depending on the time of day they travel. If they are travelling during their regular work hours, this time is typically considered compensable work time. For example, if an employee usually works from 9 am to 5 pm and takes a flight for an overnight business trip at 3 pm, they should be paid for the remaining two hours of their regular work hours. However, if they are travelling outside of their regular work hours, that time is generally not considered paid work time.

One-Day Business Trips

For one-day business trips that do not involve staying overnight, employees are entitled to be paid for the time spent travelling during their regular work hours. For example, if an employee is sent on a business trip to another city and spends time on a plane or train during their regular work hours, that travel time should be compensated. However, the time spent commuting to and from the airport or transportation hub is typically not considered paid work time, even if it takes longer than their ordinary commute.

Emergency Calls

Even if an employee's job does not ordinarily involve travel, they may be entitled to pay for travel time if they are required to come to the workplace outside of regular work hours to handle emergencies. For instance, an IT specialist who has to come in at night to address a critical issue could be entitled to pay not only for the hours spent working but also for the time spent travelling to and from the workplace.

Service Calls and Field Work

When employees are required to go out on service calls or perform field work that involves travelling to different locations, the time spent travelling to and from these customer locations or work sites is typically considered compensable work time. This is because travel is an integral part of their day-to-day job duties and may involve substantial work under the direction and control of the employer.

Employer-Provided Transportation

If employees are required to use employer-provided transportation, such as a company vehicle or shuttle service, to commute to a central location or worksite, this time may be considered paid work time. This is especially true if the employees are required to perform work-related tasks or duties during the commute.

It is important to note that the specific regulations and policies regarding travel time compensation may vary based on an employee's location and the laws or guidelines set by their employer. Employees should refer to their employment contracts, company policies, and local labour laws to understand their specific rights and entitlements regarding travel time compensation.

Travel away from home

When travelling away from home for business, there are a number of factors to consider when it comes to expenses and compensation. Firstly, let's look at the expenses that can be claimed for business travel. Then we will explore the compensation employees are entitled to for their travel time.

Business Travel Expenses

Travel expenses are the ordinary and necessary costs incurred when travelling away from home for business purposes. These expenses are often tax-deductible, but there are rules to follow. The trip must be primarily business-related, and any expenses must be reasonable, ordinary, and necessary. Meals, travel fares, accommodation, and local transportation costs are all examples of deductible expenses. However, expenses that are considered lavish or extravagant, or for personal purposes, are not deductible.

If you are travelling to a temporary work assignment, you can deduct travel expenses, but only if the assignment is expected to last a year or less. If the duration of the assignment changes and you expect to work there for more than a year, travel expenses become non-deductible from the moment your expectation changes.

Compensation for Travel Time

Employees are entitled to be compensated for some of their travel time, but not all of it. If an employee is required to travel during their regular working hours, they should be paid for that time. This includes travel to and from customer locations or worksites, as well as travel to deal with emergencies outside of regular working hours.

For one-day business trips, employees must be paid for the time spent travelling to the destination, but not for the time it takes to get to the airport or transportation hub, as this is considered unpaid commuting time.

For overnight business trips, the rules are a little different. Employees are entitled to be paid for the time spent travelling during their regular working hours, even if the travel occurs on a non-work day. For example, if an employee usually works from 9 am to 5 pm and leaves the office at 3 pm to catch a flight, they should be paid for the remaining two hours of their regular working hours.

It's important to note that these rules may vary depending on the specific laws and regulations in your location, as well as any employment contracts or company policies in place.

Travel time and pay practices

Whether travel is considered part of the working day depends on several factors, including the type of travel, the time of travel, and the employee's contract. Here are some guidelines on travel time and pay practices:

Commuting

An employee's regular commute from home to their usual work site is generally not considered compensable work time. This means that the time spent travelling from home to work and back again at the end of the day is not paid.

Special Assignments and Business Trips

If an employee travels from home to a non-typical work location and back on the same day, any time spent travelling that exceeds their normal commute is generally considered compensable. This includes business trips within or outside an employee's local area to meet with clients.

For example, if an employee usually commutes 30 minutes to their office but travels 2.5 hours round trip to a conference in another city, their employer should deduct the regular 30-minute commute and pay them for the remaining 2 hours of travel time.

Overnight Trips

The rules for overnight trips differ slightly. Employees are entitled to pay for all the time they spend working, including during regular business hours on non-working days (e.g. weekends). However, if an employee is travelling as a passenger outside of work hours and is not performing any work, this time might not be compensable.

Emergency Situations and Work Outside Normal Hours

In some cases, time spent commuting from home may be considered paid time. For example, if an employee is required to come into the workplace outside of normal hours to deal with an emergency, they may be entitled to pay for their travel time to and from the workplace.

Peripatetic Employees

Peripatetic employees do not have a fixed workplace and often spend a lot of time travelling to clients or customers. Most employers acknowledge this travel time as working time and pay these employees accordingly. Examples include travelling salespeople, care workers, and teachers working at different schools.

Non-Exempt vs Exempt Employees

Non-exempt employees are typically entitled to travel time pay, and employers must ensure travel time reimbursement and mileage reimbursement. Exempt employees, on the other hand, receive a fixed amount in each paycheck, regardless of their travel time.

State and Local Laws

It is important to note that travel time pay practices can vary by jurisdiction. For example, in California, any travel time that exceeds an employee's regular daily commute must be paid at the agreed-upon regular or overtime rates. In New York, minimum wage regulations cover work-related travel, and employees must be paid for travel time if it is part of their job duties.

Therefore, it is essential to familiarise yourself with the specific regulations in your area to ensure compliance with travel time pay requirements.

Frequently asked questions