When the Company requires an hourly employee to travel for Company business (e.g. out-of-town meetings, training sessions, etc.), he/she will generally be paid for the travel time and mileage. While traveling, the employee will also be paid for any time during which the employee performs work. All paid travel time will be considered hours worked for purposes of calculating overtime.

The guidance below is intended to address many common travel scenarios related to paying employees for their time while traveling on Company business. If your specific situation is not addressed here, or if you need further assistance, please contact your manager or HR business partner.  

 

Local Travel

An employee’s commute from home to work is generally not considered working time and is not paid. This is true whether the employee works at a fixed location or at different job sites within the same city.

Travel to/from Alternative Worksite (e.g. bank, alternate store, mandatory meeting/event): If an employee’s normal travel time to/from work is extended as a result of performing Company business at an alternative worksite, then pay for mileage and travel time that equals the difference between the employees normal travel time and mileage to/from work and travel time and mileage to/from the alternative worksite.

Examples:
Before/After Shift Travel: If employee's normal commute home is 20 minutes (15 miles), and it takes 30 minutes (20 miles) when he stops to drop off the stores nightly bank deposit, pay for 10 minutes of travel time (30 minutes travel time, minus 20 minutes normal commute) and 5 miles (20 miles, minus 15 miles normal commute).

Travel to/from Mandatory Meeting or Event: If employee normally travels 10 minutes (5 miles) each way between home and work, and travels 20 minutes (15 miles) to/from home and the location of a local Company meeting or event, then pay for 20 miles and 20 minutes travel pay (30 miles, minus 10 miles normal commute; 40 minutes total travel time to and from the meeting/event, minus 20 minutes of total normal commute).

Travel to/from Alternate Store: If employee normally travels 20 minutes (15 miles) each way between home and “home store, and travels 30 minutes (20 miles) each way between home and an alternative store location, then pay for 10 miles and a total of 20 minutes of travel pay (40 miles, less 30 miles normal commute; 60 minutes total travel time to and from alternative work location, less 40 minutes of total normal commute time).

EXCEPTION
If the employee voluntarily seeks out additional shifts at another store location on his/her own (i.e. request not initiated by the Company), do not pay for mileage or travel time.

If your employee fills in for a shift at a different store location, you must coordinate with the manager of the other store to determine which store location is responsible for entering a time adjustment in timekeeping system to capture the employees travel time.

Store-to-Store Travel: If the employee travels between one worksite to another (as opposed to traveling to/from home to the worksite) and returns to the first worksite during the same shift, then pay for employees total mileage and travel time to/from the first worksite to the second worksite.

Example:
If employee leaves in the middle of a shift at his/her “home store” and travels to a nearby store to pick up supplies or product, and returns to his/her “home store” during the same shift, then pay for the employees total mileage to/from the other store and all travel time. TIP: If you do not require employee to clock out, he/she will already be paid for the travel time and you will not have to make an extra time entry, but you will still have to pay mileage.

Out of Town Travel: Employees asked to travel for out-of-town meetings and trainings sessions will generally be paid for their travel time and mileage.  How their travel pay and mileage is calculated, however, will depend on both the duration (one-day vs. overnight) and method (driving a personal vehicle v. riding in a car/train/airplane) of travel.

One Day Meetings/Trainings (No Overnight Stay): If the Company requests that an employee travel out of town to attend a special one-day event (such as a meeting or training session), then pay for mileage and travel excluding the employee’s normal commute and mileage to/from work.

EXCEPTION
If employee travels by public transportation (bus/train/airplane), then exclude the travel time and mileage to the public transportation station instead of excluding the employees normal travel time and mileage to/from work; or

If employee works in CA, ND, or UT, pay for employee’s total mileage and travel time to/from home and the event.

Example:

Personal Car (employee drives): If employee drives himself/herself to and from an out of town training that is 2 hours from home in the same day at the request of the Company, and his normal commute to/from home to the “home store location is 30 minutes each way, then pay for mileage and a total of 3 hours travel time (4 hours total travel time from home to training less 1 hour total normal commute).

EMPLOYEES IN CA, ND, and UT ONLY: Pay for all mileage and 4 hours total travel time with no reduction for normal commute time.

Public Transportation/Personal Car (employee is passenger): If employee takes a 1 hour flight to and from an out of town meeting in the same day at the request of       the Company, and his commute time to/from home to the airport is 1 hour each way, then pay for a total of 2 hours travel time (4 hours total travel time, minus 2 hours travel time to/from airport).

EMPLOYEES IN CA, ND, AND UT ONLY: Pay for all mileage to and from airport and 8 hours total travel time, with no reduction for commute time to and from airport.

Overnight Travel: In most cases, employees who travel overnight for business related work will be paid for their travel time and mileage.  How their pay is calculated, however, depends on the mode of travel the employee uses: (1) employee’s personal car or (2) employee is a passenger in a car or public transportation.

 Personal Car (Employee Drives): IF the Company requests that an employee travel out of town for an event (such as a meeting or training that requires an overnight stay, and the employee drives his/her personal car to the event, THEN pay for all mileage and travel time to and from the event.

EXCEPTIONS
If employee chooses to travel to the event the night before it begins, or stays the night following the event, solely for his/her own convenience (i.e. location and time of the event does not otherwise require an overnight stay), pay the employee for all mileage and travel time to and from the event, minus the employees normal mileage and travel time to/from work.

If employee works in CA, ND, or UT, always pay for the employees total mileage and travel time to and from the event (no reduction for normal commute, even if the employee travels early/stays overnight following the event solely for his/her own convenience).

Example

Personal Car (Employee Drives):  If employees normal commute to/from work is 30 minutes (20 miles) each way, and the Company requires her to attend an event that starts at 7:00 am at a location 4 hours (200 miles) from her home, pay for 400 miles and 8 hours of travel time to/from the event if the employee drives herself the night before. If, however, the event starts at 1:00 p.m., and the employee drives herself the night before solely for her own convenience, pay for 360 miles and 7 hours of drive time to the meeting (400-40 miles of normal commute and 8 hours total travel time less 1 hour normal commute time).

 EMPLOYEES IN CA, ND, and UT ONLY: Pay for all mileage and 8 hours total travel time to the meeting with no reduction for normal commute.

Public Transportation/Personal Car (Employee is Passenger): IF the Company requests that an employee travel out of town for an event (such as a meeting or training) that requires an overnight stay, and the employee travels to the event via public transportation or as a passenger in a car, THEN pay for the employee’s total travel time, up to 8 hours per day.

EXCEPTION
If employee works in CA, CT, DC, or UT, pay for the employee’s total travel time to/from the event, even if it exceeds 8 hours in a day.

Example:
Public Transportation/Personal Car (Employee is Passenger): If the Company requires an employee to travel to an event, then pay for the entire time it takes for the employee to travel from home to the airport, time spent waiting at airport (minus any non-paid meal breaks), flight time, and any travel time to hotel or worksite, up to a total of 8 hours per day.