In the high-stakes world of trucking, the looming threat of serious accident litigation is a constant reality for many companies. When such situations arise, it’s crucial for owners and executives to understand that the future of their company may be at stake. This was a key takeaway from the recent address by Rob Moseley, a
Understanding the Proper Pay Procedures For Employee Travel Under The Fair Labor Standards Act
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The Fair Labor Standards Act (FLSA) applies to all private employers and employees if in any workweek the employer is engaged in interstate commerce or in the production of goods for commerce. It also applies to public employers.
The FLSA only applies to employees (29 U.S.C. § 203(e)). Thus, non-employee workers such as independent contractors, interns, volunteers and trainees may not be covered. The principal requirement of the FLSA is that employers pay the federal or applicable state or local minimum wage, whichever is greater, to all nonexempt employees (29 U.S.C. § 206). Employers often struggle with understanding how employees must be paid when traveling. The general rule is that an employee must be paid for all compensable time. Compensable time, under the FLSA, is broadly defined to include all hours that an employee is “suffered or permitted to work” for the employer. 29 U.S.C. § 203(g). While each situation is unique and requires a full evaluation under FLSA regulations, there are general rules that employers can use when modeling their pay structures for traveling employees. These rules include the following:
- The regular time spent by an employee commuting to and from work, outside the employee’s normal working hours, is ordinarily not compensable time under the FLSA. See 29 C.F.R. Section 785.35.
- The time spent by an employee going from home to work and back, outside normal working hours, on a special assignment which is out of town is compensable, at least to the extent that the time in transit exceeds the employee’s usual commuting time. See 29 C.F.R. Section 785.37.
- Time spent by an employee traveling during the employee’s normal working hours, such as travel from job site to an offsite meeting after the first principal activity of the day, is compensable working time. See 29 C.F.R. Section 785.38.
- When an employee must travel so that they are away from home overnight, this entire time will generally constitute working time. 29 C.F.R. Section 785.39.
- Employees must be paid at least minimum wage for any actual work that an employee performs while traveling. 29 C.F. R. Section 785.41.
As you can see, the requirements of the FLSA can make it extremely difficult for an employer to allow a non-exempt employee to travel. The cost of having non-exempt employees travel is costly and precise record keeping requirements must be created to ensure proper payment.
Please note that this article is a general summary and does not attempt to cover your specific situation or detail the obligations you have under state or federal law. Natalie Higgins is a labor and employment lawyer based in St. Louis, Missouri. She represents employers in all facets of litigation as well as providing consulting and training services to employers who want to proactively manage their employee litigation risks. Questions about your business to improve its discipline policy? Contact Natalie at natalie@hugheslawyersllc.com.
