Federal guidelines establish distinct rules to determine when an employee must be paid for travel time. The general principle is that routine commuting is considered an ordinary incident of employment and is not paid time. However, nearly every other type of work-related travel is subject to different criteria that determine its compensability, leading to confusion for both employers and employees seeking clarity on when the clock starts and stops.
The Standard Home-to-Work Commute Rule
Travel from an employee’s home to a fixed primary workplace at the beginning of the workday, and the return trip at the end, is defined as the ordinary commute. This travel is not considered hours worked and is not compensable under federal guidelines. This rule holds true regardless of the distance an employee travels.
The status of the travel as non-compensable remains even if an employee reports to different worksites on different days, provided those sites are within the normal commuting area. This exclusion is based on the idea that an employee is not yet engaged in their principal work activity.
Travel Between Work Locations During the Day
Once the workday has officially begun, subsequent travel between work locations is considered compensable work time. This is known as the “all in the day’s work” rule, meaning the travel is a necessary part of the employee’s principal activity. For instance, if an employee reports to an office and is then required to drive to a client site, the travel time is paid.
This travel is distinct from the regular commute because the employee is already engaged in work and traveling for the employer’s benefit. The compensable time continues until the employee reaches the last worksite for the day. Travel from that final worksite back home is then considered the non-compensable commute.
Special One-Day Assignments and Remote Worksites
A specific rule applies when an employee who regularly works at a fixed location is given a special one-day assignment in a remote location. The time spent traveling to and from this temporary worksite is considered compensable work time, even if it is a home-to-work trip. The travel is compensable because it is an unusual assignment performed for the employer’s benefit.
The employer is permitted to deduct the time the employee would normally spend commuting to their regular workplace. For example, if a one-day assignment requires four hours of travel, but the employee’s normal commute is one hour total, only three hours of travel time must be paid. The rule is triggered when the assignment is temporary and involves travel that significantly exceeds the employee’s routine commute.
Performing Work Duties While Commuting
If an employer requires an employee to perform principal work activities while traveling, the time spent performing those duties becomes compensable, even if the travel would otherwise be a non-compensable commute. This applies when the travel time is intertwined with principal activities, such as receiving instructions, checking emails, or writing detailed reports. Any work a non-exempt employee is required to perform while traveling must be counted as hours worked.
The act of carrying essential tools or equipment generally does not make the commute compensable on its own. However, if the burden of carrying the tools or equipment is so significant that it prevents the employee from using the time for personal purposes, the nature of the travel may change. The focus is on the action taken during the travel, not just the presence of work-related items.
Overnight and Out-of-Town Business Travel
Travel that requires an employee to be away from home overnight is subject to distinct compensation rules. Travel time that cuts across the employee’s normal working hours is considered work time and must be paid, regardless of the day of the week. For example, if an employee normally works 9:00 a.m. to 5:00 p.m., any travel time occurring between those hours on a weekend is compensable.
Conversely, travel time outside of normal working hours is generally not compensable if the employee is a passenger and is free to use the time for personal activities. The exception is if the employee is required to perform work while traveling during non-working hours, such as reviewing documents. Time spent waiting for transportation, meals, or lodging is generally not compensable unless work is required during that period.
Employer Requirements for Compensating Travel Time
Employers must accurately track and record all compensable travel time for non-exempt employees. This recordkeeping ensures compliance with federal guidelines that require payment for all hours worked. Compensable travel time is often paid at the employee’s regular rate, though specific contracts or agreements may permit a different rate if legal conditions are met.
Beyond federal requirements, state laws can impose stricter rules regarding travel time compensation. Employers must consult local regulations to ensure full compliance. Failure to correctly identify and compensate for travel time can lead to violations of wage and hour laws.