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Are Your Non-Exempt Employees Being Compensated Correctly for Travel Time?

Lexology (03/23/12) Jordan B. Schwartz

Whether a nonexempt employee’s travel time for
business-related events must be compensated and constitutes
overtime under the federal Fair Labor Standards Act depends on
certain factors. Travel time during normal work hours is
considered work time, and because it is being substituted for the
duties the employee would otherwise perform, he or she must be
compensated. However, travel time outside of regular work hours
does not have to be compensated; the law does require employees
to be compensated for travel that occurs on weekends and other
nonworking days, but only during the hours of the day they would
be working if it was a weekday. Moreover, if the employee has
already completed a 40-hour work week, the travel time should be
considered overtime and compensated accordingly. The law includes
layovers as travel time, but meal times can be deducted. These
rules do not apply to the commute to and from the airport, train,
or bus station, nor do they apply to everyday work commutes.