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January 24, 2018
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travel time pay for hourly employees

Answer (1 of 4): Travel time, apart from to and from your normal place of business, is considered part of your paid work time. The obligation on an employer is to pay an employee in respect of their actions in carrying out their work. If you believe there may be employees of the business working close to 48 hours a week and they travel directly to or from customers' premises, you should discuss your employees . Under the law, employees paid by the hour must be paid at least minimum wage for ALL hours worked up to 40 hours per week. The mileage can be claimed with the IRS individually and they cannot require an hourly employee to travel to these remote locations 1-3 times a week expecting the travel time to come out of the . DOL Clarifies Travel Time Pay - Payroll Management, Inc Murphy Law Group focuses exclusively on employment law and representing employees in Pennsylvania and New Jersey. Employers must also count as hours worked time spent by employees traveling on non-workdays if the travel takes place during the employees' normal work hours. Exempt employees, who are paid based on their performance and expertise, are not entitled to travel time pay. Let's say Robert Smith is a nonexempt . The Fair Labor Standards Act of 1938 (FLSA) is the federal statute that deals with issues like minimum wage and overtime pay (29 U.S.C. The term "hours worked," however, is not all that simple to define or apply. What Counts as Work Time: Hours of Work and Overtime Tool ... But employers and employees may agree to a separate rate for travel time if they agree before the travel and the separate rate is at least the minimum wage (with a higher rate for overtime, if applicable). Pay to employees for local travel time is only applicable to non-exempt (hourly) employees, not to exempt (professional or managerial) employees. That employee should be paid for 2.5 hours of travel time per day due to the increase in commuting time. Under the UK's National Minimum Wage Act and Regulations, the general position is that travel time between home and a place of work is excluded from the obligation to pay the NMW, including for mobile workers. Similarly, work performed while traveling must be counted as hours worked under 29 C.F.R. Yes, an hourly employee must be paid for time spent for round-trip travel between two cities in one day. The employer is required to pay for the cost of the education and for employee's work time attending the seminar. An employee's pay must be at least the current federal minimum wage rate for the first 40 hours of work during a workweek and one and one-half times his or her regular rate of pay for any hours he or she works over 40 during a workweek. Employee A • If travel time exceeds 8 hours in one day or if travel time plus working time exceeds 8 hours in a day (or 40 hours in a workweek), the Company will compensate the employee at the appropriate overtime pay rate, which will be equal to 1 1 / 2 times the weighted average of the . But like their salaried counterparts, hourly rates are classified as the same form of non-exempt technician work in the eyes of the Department of Labor. Travel as a passenger during non-shift hours when no work . The Port arranged and paid for the trips and negotiated with the workers' union to reach an agreement that these hourly employees would be paid a maximum of eight hours a day straight time for travel to, from, and within China. Examples . Employees required to buy work related items can't be forced by their employer to use their wages to pay for these items, if the requirement is unreasonable. However, travel time during the employee's normal workday must be paid, including corresponding hours on non-working days. first, you can set a different rate of pay for travel time ( e.g., a flat fee for a travel day, or an hourly rate for time actually spent in travel that is lower than the rate you pay the employee for productive working hours), so long as (1) you notify employees of the separate rate in advance of the travel, (2) the rate is sufficient to cover … Use time clock rounding correctly. You are eligible to receive pay for local travel time only if you are a non-exempt employee (meaning: you are employed on an hourly basis). This doesn't include covering the costs of getting to and from work unless you have specifically . Travel time to and from the employees actual place of employment or principal activity generally does not count as "hours worked" toward determining whether overtime pay is due. Posted By: SV Employment Law Firm on March 3, 2016. Federal overtime requirements are based on each individual workweek, which can be any fixed and recurring 168-hours (seven consecutive 24-hour periods). The employer must still follow the law on the National Minimum Wage. Examples of a Non-Exempt (paid hourly) Employee and Overnight Travel A. 785.41. If a business requires an hourly employee to travel for a work purpose, he generally must be paid for it. In this example, since the flight is at 9.a.m., a time the employee would normally be at work, the travel time on the flight is considered work time. The worker must be paid at least the minimum wage for the time he spends at the appointments, plus the travel time between appointments. Travel time is home to work travel and does not need to be counted as hours worked. 6  Different Types of Travel Time: However, the employee must be paid for all hours engaged in work or "engaged to wait" while on travel. For all hours over 40 in a week, you must be paid time and a half. Employees travel to and from the distant locations on a daily basis or may choose to temporarily reside in the area. Usually, compensable travel time is calculated at the employee's hourly rate (with a higher rate for overtime, if applicable). The obligation on an employer is to pay an employee in respect of their actions in carrying out their work. Three scenarios addressed by the DOL 1. The analysis is compounded when the hours worked are, for instance, part of the employee's . Employees' working week may now exceed 48 hours placing the employer in breach of the Working Time Regulations (unless the employee has already signed an "opt out" in relation to the 48 hour weekly limit). Travel Time Pay Under certain circumstances, you may be required to pay your employees for their travel time. Employees' working week may now exceed 48 hours placing the employer in breach of the Working Time Regulations (unless the employee has already signed an "opt out" in relation to the 48 hour weekly limit). Want To Share Your HR Knowledge Or Gain Knowledge Through Other Professionals?Lets Discuss HR . It's most commonly applicable to businesses that work with teams that are paid hourly, but it's also relevant for salaried employees in certain situations. Nevada regulations are more specific when it comes to travel and . The DOL states that travel time must be paid at the employee's regular rate of pay unless the employer and employee have an agreement stating otherwise. So, you need to make sure that you are calculating FLSA overtime accurately. This is often a confounding matter for employers because whether travel time is work time depends on the type of travel and when it happens. Travel Time Compensation in California. If you will pay travel time at a rate that is less than the employee's normal hourly rate, you should state this in writing to all affected employees in advance of the travel. In FLSA2018-18, the DOL addressed several questions about when travel time is compensable for technicians paid on an hourly . Two employees travel to attend a professional conference in Chicago. Makeup Time Pay For example, if a construction-employee is paid $15.00 an hour for their normal duties, the employer may elect to pay this employee $8.00 an hour (or as low as $7.25 an hour) for the travel-time that is work-time. This would not apply if the employee is permanently . Email us at murphy@phillyemploymentlawyer.com or call (267) 273-1054 for a free consultation. Significant overtime liability can result from employers not compensating employees for this time. Please review the federal labor law rules on hours worked in Code of Federal Regulation (CFR) 785, which the North Carolina Department of Labor has adopted. When it comes to calculating overtime and travel time, employers need to pay extra attention to overtime requirements because a mistake can cost a lot more than 1 ½ times an employee's regular pay. Nevada law requires employers to pay their employees for each hour the employee works. If you believe that you are entitled to additional pay for travel time, it is important to contact an experienced employment lawyer. Texas overtime law generally requires employers to pay hourly employees for work performed "off the clock," during lunches or meal breaks when you are not completely relieved of duties, for travel time after the start of the work day and before its end, and for time spent attending mandatory meetings, training, and most wait time. wear uniforms. For example, in the 2014 case Whittlestone v BJP Home Support, the employment appeal tribunal (EAT) held that the NMW applied to the time spent . That doesn't mean your employer is necessarily obliged to pay you any more for that time, unless your average income falls below the minimum wage rate as a result, but th. If employees are required to meet at a location and take transportation to a remote worksite, the trip from the meeting location (marshalling point) to the worksite is paid travel time. The only time you would normally look at making a payment or some contribution towards travel to and from work is if you require your employee to work at a different location from usual. In other words, compensation for travel time tends to be a non-exempt affair. (Reference V. b) B. Managers shouldn't pressure non-exempt employees to attend events that aren't required. Further, if you are an hourly employee and you receive . Home-to-work travel. If that employee is assigned to work in Boston for a week, that daily commute would increase to approximately three hours a day, for an increase in travel time of 2.5 hours per day. If the employee has no fixed place of work Some jobs have no fixed place of work. This Compliance Overview provides general information relating to compensable travel time under the FLSA. February 18, 2014. Human Resource Blog Where HR Professionals Seek Answers A Practical Source For Your Daily HR Needs.Lets Build An HR Blog Community Together! Travel During the Work Day Employees are entitled to pay for time spent traveling during the hours when they regularly work (the period of the day they regularly work), even if they ordinarily work Monday through Friday but travel on the weekend. Pay for some travel time is required by law. But if it's optional, a non-exempt employee doesn't have to be paid. Travel time laws are complex. They are just as viable as those with salaries to document perceived excess work and inquire about time-and-a-half. In these situations, an employee may be entitled to a payment or repayment, depending on the industry and the job they do. 3. Overtime calculations concerning travel time can be complex, and it might be in your best interest to hire an overtime lawyer with experience . Performing authorized work-from home to work or from work to home. You must be paid at least minimum wage or your regular hourly rate for travel time. When hourly employees travel as part of the job, several employment law issues require attention. CT Reg. • Transporting or delivering materials or equipment to a job site prior to the start of the work day and/or returning materials or equipment after the end of the work day . commute time. because flsa provides two situations in which a nonexempt employee, but not an exempt employee, can be paid for travel on overtime hours, (specifically, during hours on nonworkdays which correspond to regular working hours and for one-day travel as a passenger to and from a temporary duty station), it is possible for a nonexempt employee to be … Example 1 - Out of Town/Same Day Travel. However, pay obligations differ depending on whether or not the travel occurs during the day, as a one day assignment or for an overnight trip. In 2018, the U.S. Department of Labor published an opinion letter, clarifying travel time pay for nonexempt hourly employees. For example, an employee who is required to travel as a passenger with the consumer "as an assistant or helper" and is expected to perform services as needed is working even though traveling outside of the employee's regular work hours. Examples of Travel Time Travel That is All in a Day's Work: Time spent by an employee in travel as part of their principal activity, such as travel from job site to job site during the workday, is work time and must be counted as hours worked. This is considered part of the regular duties normally imposed upon employees and if the employer requires attendance, the employer must pay. Because there are often different hourly rates involved, figuring travel pay for hourly employees can get downright complicated. Employees do not need to be paid their usual hourly rate for travel time, but they must be paid at least minimum wage. Time spent traveling during normal work hours is considered compensable work time. Many cities actually have a higher minimum wage than the state. An employee who normally finishes the day's work on the employer's premises at 5:00 p.m. is sent to a job site completing work at 8:00 p.m. §203). The following chart should be used to determine whether travel time during the workday is paid time for hourly employees. Excerpted from US DOL Wage & Hour Division Fact Sheet #22. Call Gibbons Law Group today at 704-612-0038. Yet all employees know that . For example, many employers pay employees at a lower rate than their standard pay for travel time. California law requires you be paid at least the minimum wage for all "hours worked" including travel time. For instance, if the normal hours are 8 am to 5 pm from Monday through Friday, and the employee must perform job-related travel on Sunday from 3 pm to 7 pm, the employer would need to pay only for the time from 3 to 5 pm. Frequently a single trip can generate three different types of hourly wages. When the travel takes place outside the employee's normal work days; the employee is required to be compensated for the travel time if he/she is the driver to the airport or hotel. If so, Phil will build a strong case and pursue your employer for any owed wages. Just make sure you're rounding to the closest quarter hour; so, for minutes 1 to 7, you'd round . 31-60-10(d) An employer must pay employees for time spent traveling when the travel is for the employer's benefit . Make sure all time, including the travel time, is recorded in the workweek that it occurred. normal hourly rate of pay. The best way to decipher them is using a case study. Let's assume that you assume that a typical standard rate of pay is $10.00 per hour with a client including travel time, if you automatically pay overtime at a rate of $15.00 per hour, you will not pay all overtime due to employees whose actual regular rate of pay exceeds $10 per hour. For example, if Tom usually works 9 to 5, and leaves the office at 3 p.m. to catch a flight for an overnight business trip, he should be paid for the two remaining hours in his . This has also been backed up by case law. That means you must be paid the higher local minimum wage for the hours you work. To save on costs, employers may only pay "straight time" for hours over 40 hours in a . A real world example. This doesn't include covering the costs of getting to and from work unless you have specifically . In general, an employee has no right to wages or expenses for commute time, although there are a couple of exceptions to this that I address below. The question of whether travel time is paid is only relevant to some employees. It's understandable that employers are confused about . Yes. One worker who flew to and from Houston to attend training was compensated for training time but not for flight time. This is often referred to as "ordinary home to work travel." However, travel between job sites during the work day is considered "hours worked" or rather work time and requires appropriate payment. Whether time spent traveling is paid work time for nonexempt employees depends on the type of travel involved. Under the FLSA, employers can choose to track employees' time in 15-minute increments—and if an employees' actual hours worked falls outside of those increments, you can round to the nearest quarter-hour. The only time you would normally look at making a payment or some contribution towards travel to and from work is if you require your employee to work at a different location from usual. Examples: Employees meet at the airport at 5:30 a.m. to fly . •Once an overtime-eligible employee begins compensable work time on a day . Employees are entitled to pay for time spent traveling during the hours when they regularly work (the period of the day they regularly work), even if they ordinarily work Monday through Friday but travel on the weekend. 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travel time pay for hourly employees