Guide to Travel Time Pay for Hourly Employees

Learn everything about travel time pay for hourly employees, including federal and state laws, when travel time must be paid, rates, tracking methods, and common mistakes to avoid.

Understanding travel time pay for hourly employees can be confusing for both employers and workers. If you run a business with hourly staff or work as an hourly employee yourself, knowing when travel time must be paid is important. This guide will help you understand everything about travel time pay for hourly employees, including what the law requires and how to track it properly.

What is Travel Time Pay for Hourly Employees

Travel time pay for hourly employees is the compensation that workers receive for time spent traveling as part of their job duties. This is different from regular commuting time, which is the daily trip from home to work and back. When employees travel for work-related activities that their employer requests, they may be entitled to payment for that travel time.

The rules around travel time pay for hourly employees are set by federal and state labor laws. The main federal law governing this is the Fair Labor Standards Act or FLSA. This law requires employers to pay non-exempt employees for certain types of work-related travel. Most hourly employees fall into the non-exempt category, which means they are entitled to overtime pay and must be paid for qualifying travel time.

When Does Travel Time Pay for Hourly Employees Apply

Not all travel time counts as paid work time. The type of travel determines whether travel time pay for hourly employees is required.

Regular Commuting Time

Your normal drive from home to your regular workplace is not paid time. This applies to all employees, whether hourly or salaried. The law considers this regular commuting time as the employee's responsibility. Even if you work at different locations, the time it takes to get to your first work location of the day is usually not compensable.

Travel Between Job Sites During Work Hours

If an hourly employee needs to travel between different work locations during their regular work hours, this time must be paid. For example, a maintenance worker who travels from one building to another during their shift must be paid for that travel time. This also includes traveling to meet clients or going to different job sites throughout the day.

Special One-Day Assignments

When an hourly employee is given a special assignment in another city for just one day, the travel time to that location must be paid. However, employers can deduct the employee's normal commuting time. For instance, if an employee normally has a 30-minute commute but must travel 2 hours to a special assignment, the employer must pay for 1.5 hours of travel time each way.

Overnight Business Trips

For overnight business trips, the rules about travel time pay for hourly employees become more detailed. If the travel happens during the employee's normal work hours, it must be paid even if it occurs on a weekend or a day off. Travel time outside normal work hours during overnight trips does not need to be paid unless the employee is actually working during that time.

Emergency Callbacks

If an hourly employee finishes their shift, goes home, and then gets called back to handle an emergency, all the travel time to reach the emergency work site must be paid. This is considered part of the emergency work assignment.

Travel Time Pay Rates for Hourly Employees

Once you determine that travel time should be paid, the next question is how much to pay. The rate for travel time pay for hourly employees depends on federal law, state law, and company policy.

Under federal law, travel time must be paid at least at the minimum wage rate. Many states require that travel time for hourly employees be paid at the same rate as regular working hours. Some states allow employers to pay a different rate for travel time, but it must be agreed upon in writing and cannot be less than minimum wage.

If an employee works overtime during a week that includes paid travel time, the travel time counts toward the total hours worked. This means if an hourly employee works 40 regular hours plus 8 hours of paid travel time in one week, they would be entitled to overtime pay for 8 hours at one and a half times their regular rate.

State-Specific Rules on Travel Time Pay for Hourly Employees

While federal law sets the baseline, many states have their own rules about travel time pay for hourly employees.

California requires that travel time pay for hourly employees be paid at least at minimum wage or the employee's regular hourly rate. New York follows federal guidelines but ensures that workers receive at least minimum wage for all compensable travel time. Washington State has stricter rules than federal law and requires all work-related travel to be compensable regardless of the time of day. Oregon classifies work travel time into different categories and generally requires payment for all types except portal-to-portal travel.

Always check your specific state's rules about travel time pay for hourly employees to ensure full compliance with the law.

How to Calculate Travel Time Pay for Hourly Employees

Calculating travel time pay for hourly employees involves several steps. First, determine which travel time qualifies as compensable work time based on federal and state laws. Second, calculate the total travel hours, including any waiting time that is part of the travel. Third, check if overtime applies by adding the travel hours to the employee's regular work hours for the week. Fourth, apply the correct hourly rate using either the regular hourly rate or the agreed-upon travel rate. Fifth, subtract normal commuting time if applicable for special one-day assignments.

Tracking Travel Time for Hourly Employees

Proper tracking of travel time is essential for compliance with labor laws and accurate payroll. Employers are legally responsible for tracking all compensable work time, including travel time.

Using time tracking software makes this process much easier. Modern time clock systems allow employees to clock in when they start traveling for work and clock out when they arrive. These systems can track GPS locations, which helps verify that employees are traveling for legitimate work purposes.

Open Time Clock offers features that make tracking travel time simple and accurate. The system includes GPS tracking that records where employees clock in and clock out. This is especially useful for hourly employees who travel to different job sites throughout the day. The software also provides detailed reports that break down work hours by location and type of activity, making payroll processing easier.

With a reliable employee time tracking system, you can ensure that travel time pay for hourly employees is calculated correctly every time. The system prevents errors and provides documentation in case any questions arise about paid travel time.

Creating a Travel Time Pay Policy

Every business that employs hourly workers who travel should have a clear written policy about travel time pay. This policy should explain what types of travel are compensable, what rate will be paid for travel time, and how employees should track their travel time.

Your policy should cover regular commuting time and clearly state that it is not paid. It should explain when travel between job sites will be paid. The policy should address special assignments and overnight trips. Make sure to include information about how to report travel time and what documentation is needed.

Have all employees read and sign the policy to show they understand the rules. Keep the signed policy in each employee's file. Review and update the policy regularly to ensure it complies with current federal and state laws.

Common Mistakes with Travel Time Pay for Hourly Employees

Many employers make mistakes when handling travel time pay for hourly employees. One mistake is treating all travel time the same way. Remember that different types of travel have different rules. Another mistake is failing to pay for waiting time during travel. Some employers forget to include travel time when calculating overtime. Not having a clear written policy is also a common error. Failing to track travel time properly is perhaps the biggest mistake. Using a modern time clock app can help avoid this problem.

Technology Solutions for Travel Time Tracking

Modern technology has made tracking travel time for hourly employees much easier than it used to be. Cloud-based time clock systems allow employees to clock in from any location using their smartphones or computers. GPS tracking features verify that employees are at the locations they claim to be. This prevents time theft and provides documentation of work travel.

Time tracking software can automatically calculate travel time pay based on the rules you set up. The system can distinguish between different types of travel and apply the correct pay rate. Reports can be generated quickly to show travel time by employee, location, or time period. Integration with payroll systems means that travel time data flows directly into payroll calculations, reducing manual data entry and the risk of errors.

Conclusions

Understanding travel time pay for hourly employees is important for maintaining legal compliance and fair treatment of workers. The rules about when travel time must be paid depend on the type of travel, federal and state laws, and company policies. Regular commuting time is not paid, but travel between job sites during work hours, special assignments, and certain overnight travel must be compensated.

Work-related employers should create clear policies about travel time pay for hourly employees and use reliable time tracking systems to ensure accurate payment. Hourly employees should understand their rights to travel time pay and accurately track all work-related travel. When both employers and employees understand the rules and use proper tracking tools, everyone benefits from fair and accurate compensation for travel time.

FAQs:

1. What is the difference between commuting time and travel time for hourly employees?

Commuting time is the regular daily trip from home to your primary workplace and back home again. This time is not paid for any employee. Travel time refers to work-related trips during the workday or special trips required by your employer. Travel time may be compensable depending on the specific situation.

2. Do employers have to pay for overnight travel outside of normal work hours?

Under federal law, employers must pay hourly employees for overnight travel time that occurs during their normal work hours, even if the travel happens on a day off. For example, if you normally work 9 am to 5 pm and you travel on Saturday at 10 am, you must be paid for that travel time.

3. Can an employer pay a lower rate for travel time than regular work time?

Some states allow employers to pay a different rate for travel time as long as the rate meets at least the minimum wage and is agreed to in writing. However, many states require that travel time for hourly employees be paid at the same rate as regular working hours. Employers should check their specific state laws before implementing a reduced travel pay rate.

4. How should I track travel time as an hourly employee?

The best way to track travel time is to use your employer's official time tracking system. Many companies now use time clock software that allows you to clock in when you start traveling for work and clock out when you arrive at your destination. If your employer does not provide a tracking system, keep your own detailed records, including the date, start time, end time, locations traveled between, and purpose of the travel.

5. What should I do if my employer is not paying me for travel time that should be compensable?

First, review your company's travel time pay policy to make sure you understand what types of travel should be paid. Keep detailed personal records of your travel time, including dates, times, locations, and purposes. Speak with your supervisor or the human resources department about the issues.