A Practical Guide to Navigating Travel Time
Whether you have non-exempt employees who regularly travel as part of their job duties or business needs have your employees traveling for special projects, effectively managing travel time requires a clear understanding of legal obligations and a focus on practical solutions that meet both employer and employee needs. This guide outlines some of the different types of travel time and provides examples of how employers can handle each scenario.
Home-to-Work Travel
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General Info: This is typically non-compensable unless the employee is traveling to a different site, beyond their normal commuting area, for a special one-day assignment.
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Example: An employee’s usual commute to the office where they normally work takes 20 minutes and is not compensable. However, when the employer requires the employee to travel to a client site at the start of the workday, which takes 60 minutes, the additional 40 minutes of travel time beyond the normal commute becomes compensable.
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Handling Strategy: Employers should clearly define their travel time policy, specifying when travel is compensated. For special assignments involving travel to different locations, employers should provide clear compensation guidelines and instruct employees to report any additional travel time.
Travel During the Workday
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General Info: Travel that occurs during the workday or is part of the employee’s principal activities is generally compensable.
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Example: An IT technician traveling between various office locations to fix network issues must be paid for the time spent traveling.
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Handling Strategy: Employers should have a straightforward process for employees to report their travel time. Utilizing time-tracking software can help streamline this process, ensuring accurate recording and compensation.
Overnight Travel
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General Info: Travel that keeps an employee away from home overnight involves different rules. Employers must pay employees for time spent traveling during their normal work hours, even if it falls outside their regular working days.
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Example: If an employee travels from 2 PM to 8 PM for a conference, and their regular work hours are 9 AM to 5 PM, the time from 2 PM to 5 PM must be compensated. Time past 5 PM must continue to be paid if the employee is driving or simultaneously doing other work, such as creating a slide deck for the conference while on an airplane.
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Handling Strategy: Employers should establish clear policies on overnight travel, detailing the compensation for travel time during regular work hours. Additionally, prior to travel, managers should have one-on-one discussions with employees to set clear expectations about compensable time and reporting requirements. Providing a mobile timekeeping app and/or travel expense reporting template can help ensure employees are properly compensated for their time.
If you need advice on how to navigate the complexities of travel time, contact the HR Advice Team at advice@letscatapult.org or (866) 440-0302.
Frequently Asked Questions
Is employee travel time compensable under the FLSA?
It depends on the type of travel. Ordinary commute to and from a regular work location is not compensable. Travel during the workday from job site to job site is compensable. Travel away from home for overnight business trips — including travel that cuts across the employee’s normal work hours — is compensable. The specific rules are complex and fact-specific.
Do employers have to pay for time an employee spends traveling between customers in a day?
Yes. Travel between job sites, customer locations, or work assignments during the workday is considered hours worked under the FLSA and must be compensated for non-exempt employees. This applies even if the employee’s first trip starts from their home.
Is out-of-town travel time compensable during weekends?
When an employee travels overnight to a work assignment, travel time during the hours that correspond to the employee’s regular working hours is compensable — including on Saturdays and Sundays. For example, if an employee works Monday–Friday 9am–5pm and travels on Saturday afternoon during those hours, that Saturday travel time must be paid.
Can an employer pay a lower rate for travel time?
Yes, in some circumstances. Employers may pay a different (lower) rate for travel time provided: the rate is agreed upon in advance, the rate is at or above minimum wage, and the employer properly calculates overtime using the blended rate when applicable. This arrangement should be documented in writing.
What are the rules for compensating employees who drive company vehicles?
Employees who drive company vehicles during work hours for work purposes (deliveries, client visits, between job sites) must be compensated for that driving time. If an employee drives a company vehicle to and from home but has no other duties during that commute, it generally remains non-compensable as a regular commute, provided no work is performed en route.
