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MARCH 2005
WHEN ARE EMPLOYERS REQUIRED TO PAY FOR TRAVEL TIME?
General Rules for Daily Commute Time
Travel Time continues to be an area of concern and confusion for many employers. In general, the rule is that an
employer does not have to pay an employee for the normal commute to work because this time is not considered
“hours worked” under the various wage orders. However, employers must pay workers for time they are required
to spend traveling to and from work if the employee is subject to the control of the employer during this time, even
if the employees are not working. (If an employer requires an employee to use company provided transportation
to and from a job site - this would be employer controlled time.)
When is Travel Time Paid and How to Pay It
Most travel time on the job is considered “hours worked” so any time spent traveling will be computed into an
employee’s daily hours worked, which may require the payment of overtime for certain hours. To avoid having
to pay substantial overtime an employer may establish a different pay rate for travel time, instead of the regular rate
of pay.
The following conditions must exist for the different travel pay rate to apply:
The travel rate cannot be less than minium wage.
The employee must be informed about the different pay rate in advance.
The employee must be reimbursed for all out-of-pocket travel expenses.
Travel time outside of an 8 hour day or a 40 week must be counted as “work time” for
overtime purposes. Overtime is based on an employee’s “regular rate of pay”. In
California, when two rates of pay are paid during a workweek, the method to determine
the “regular rate of pay” for overtime calculation is based upon the weighted average of
all hourly rates paid. To establish this rate, add all hours worked in the week and divided
that number into total compensation for the week.
Overnight Travel Rate
Employees often travel out-of-town for business, including overnight stays. Employers must pay for the
employee’s time getting to and from the business location. Time spent driving or flying, traveling to and from the
out-of-town event and waiting to purchase tickets, check baggage and board are considered compensable hours
Law Offices of Cynthia Elkins
Special Bulletin/March 2005 © Law Offices of Cynthia Elkins 2005
worked. Time spent sleeping or engaging in personal activities is not paid time.
If an employee travels for his/her home to the airport, and the travel is the same, or substantially the same as, the
distance and time between home and work, travel times does not begin until the employee reaches the airport.
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Travel Pay - March 2005 |
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This information is intended to provide guidance in the area of employment law and is provided as a service of the Firm. While every effort
has been made to ensure the accuracy of the information contained in this bulletin, it is not intended to serve as "legal advice". If additional
information or assistance is needed on any of the topics contained in this informational package or any other matter, please feel free to
contact Cynthia Elkins for further information. All rights reserved. ©2005.
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