Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | Official website
Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | Official website
Non-exempt employees who travel for work must be compensated for their travel time, according to a recent decision by the U.S. Third Circuit Court of Appeals. The court found that home health aides should have been paid for traveling between client homes, resulting in a reported cost of $7 million.
Employers are encouraged to assess the purpose of an employee's travel and its relation to their work duties. Douglas Lipsky from Lipsky Lowe LLP emphasized the importance of determining who benefits most from the travel: "It is important to look at who benefits most from the travel – the worker or the company."
Robert Boonin, an attorney with Dykema Gossett PLLC, explained that once a workday begins, all subsequent travel during that day is compensable. He stated, “It’s not pre-shift or post-shift work. No. The shift has already started. Any work that occurs, including travel, once the principal activity is performed until that last principal activity is performed that day is, in most cases, compensable.”
For out-of-town assignments, employers should ensure travel occurs during normal working hours to make compliance straightforward. Work done while traveling counts as hours worked unless it happens outside regular hours without involving necessary activities.
Commuting time before or after a workday typically isn't compensable unless it's considered excessive for remote workers occasionally required to visit an office far away.
Human Resource professionals need to review organizational policies regarding non-exempt employee travel to ensure compliance with wage and hour regulations.