Everything Employers Need to Know About Travel Time Compensation

Navigating the ins and outs of employee compensation, especially regarding travel time, can feel like untangling a ball of yarn. But fear not! We're here to illuminate the complexities of travel time compensation under the Fair Labor Standards Act (FLSA). Whether you're an employer striving to uphold federal requirements or an employee seeking clarity, we've got you covered.

Compensable vs. Non-Compensable Travel Time: Deciphering the FLSA

Employers must understand when travel time should be compensated to avoid potential compliance issues. Let's break down the key scenarios for non-exempt workers:

1. Home-to-Work Travel:

• Compensable:

  • When employers require stops at the office or errands during the commute.

  • The employer mandates carpooling arrangements.

  • Commutes exceeding the normal commute to work (only the extra time is compensable).

  Non-Compensable:

  • Regular commuting, even if using a company vehicle.

2. Worksite-to-Worksite and Local Travel:

• Compensable:

  • All travel between worksites during the workday.

  • Time spent traveling while performing work-related tasks, like making bank deposits.

  Non-Compensable:

  • Home-to-first worksite and last worksite-to-home, unless the distance is extraordinary.

3. Same-Day Out-of-Town Travel:

• Compensable:

  • Travel time to and from out-of-town destinations within the same workday, regardless of transportation mode.

  • Examples: attending one-day seminars, conferences, or meetings.

  Non-Compensable:

  • Regular non-working meal breaks.

4. Overnight Travel:

• Compensable:

  • Travel occurring within regular work hours, whether on workdays or non-workdays.

  • Mandatory work-related activities during travel, including events and meetings.

  • Any work conducted while traveling, like answering emails.

  Non-Compensable:

  • Transit time as a passenger outside normal work hours.

  • Regular meal periods.

  • Time spent sleeping.

5. Additional Considerations:

• California and some other states may have stricter travel time compensation requirements.

• Employers should stay informed about both federal and state regulations to ensure compliance.

Practical Tips for Small Business Owners

1. Implement a Travel Policy: Clearly outline compensable vs. non-compensable travel.

2. Train Managers: Help managers identify scenarios where travel time must be compensated.

3. Keep Detailed Records: Encourage employees to track travel time accurately.

Conclusion

Navigating travel time compensation under the FLSA can be complex, but with the right knowledge, employers can ensure they fulfill their obligations while fostering positive relationships with their employees. Understanding these regulations is key to maintaining a fair and compliant workplace environment.

At Genovations HR, we're committed to providing valuable insights and support to help businesses thrive while staying compliant with labor laws. Stay tuned for more helpful tips and guidance!