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DOL Explains When Employees Must Be Paid for Travel Time

Jul 6, 2018

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Eighty years ago the Fair Labor Standards Act (FLSA) established federal minimum wage and overtime requirements for hourly employees. The law’s basic tenet seems straightforward: Employers must pay employees for their “work.” Yet for many employers, compliance with the FLSA on issues such as employee travel time continues to be problematic because the FLSA does not really explain when an employee is at “work.”

The FLSA and Portal-to-Portal Act

The Supreme Court initially explained that “work” time means when an employee’s activities are controlled or required primarily for the benefit of the employer. Congress subsequently added some specifics to the Supreme Court’s expansive definition. The Portal-to-Portal Act, an amendment to the FLSA, provides that employee work time does not include:

(1) Travel to and from the actual place of performance of the principal activity the employee is employed to perform; or

(2) Activities that are undertaken before or after the employee’s principal work activity.

Three Scenarios and DOL’s Opinion Letter FLSA 2018-18

Recently, the U.S. Department of Labor (DOL) issued an opinion letter in response to a company’s questions about travel time pay for a group of hourly employees who repair, inspect and test construction cranes. The employees do not have a fixed work location; they travel to various customer locations each day. They usually work eight to twelve hour days servicing cranes, and generally start work at around 7:00 a.m. Depending on the availability of parts and other factors, the employees may need to stay in a hotel overnight and return in the morning to complete a job. Employees are provided company vehicles that may be used for both work and personal matters.

Three travel time scenarios were considered by the DOL:

(1) Employee travel time from home to the company’s office, using a company vehicle, to obtain a job itinerary and then continue on to various customer locations. Travel time from home to office varies from 15 minutes to an hour, depending on where the employee lives.

(2) Employee travel time from home directly to a customer location; and

(3) Employee travel time by plane on a Sunday from home to an out-of-state destination for a company training that begins at 8:00 a.m. on Monday. The training continues through Friday, with return travel home on Friday after class, or occasionally on Saturday, depending on flight availability.

The first two scenarios involve common commutes to and from work. Under the Portal-to-Portal Act, employees do not need to be paid for time spent commuting between home and work. This generally holds true, even when the employee travels directly from home to different job sites, unless the commute time involved is extraordinary. Once the employee has arrived at the job, however, FLSA regulations require payment for all travel time between job sites during the day. Use of a company-provided vehicle within the normal commuting area typically does not convert the employee’s ordinary commute into compensable work time.

Scenario three implicated how to account for employee travel time away from home, both on the weekend and overnight. Travel away from home is clearly worktime when it cuts across the employee’s usual work day; the employee is simply substituting travel for usual job duties. This also includes travel time on Saturday and Sunday that corresponds to the employee’s normal working hours on other days of the week. The DOL also noted that an employee must be paid for all time the employee is actually required to work while on travel, irrespective of whether or not it falls within the employee’s regular work day.

What Does this Mean to You?

Calculating employee travel time can pose a significant challenge for many employers. There are multiple factors you must take into account, even when an employee is traveling within his home territory. There are no bright lines to establish when an employee has strayed outside his normal commuting area, converting what would have been an unpaid commute into time on the clock. The FLSA requires employers to maintain accurate time records for employees; a failure to do so can result in significant statutory damages and attorneys’ fees.

If you find yourself facing such employee travel circumstances as described here, the employment law attorneys at Bean, Kinney & Korman can assist in evaluating your company’s particular environment and help craft a reasonable solution that will address the situation.

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When Do Employers Have to Pay Employees for Travel Time?

Travel Time Pay for Hourly Employees

Deanna deBara

For some small businesses, traveling to meet clients, make sales, and manage day-to-day activities is a must. For others, traveling is valuable for attending conferences, participating in networking events, or undergoing specialized training.

But if it's your employees doing the traveling, do you need to pay them for that time? Whatever your preferences are as a small business owner, the  legal  answer is: that depends.

Let's explore when you need to provide travel time pay for hourly employees, which employees are entitled to that pay, and, if they are entitled, how much you'll need to pay them. 

Who Is Entitled to Travel Pay?

All  non-exempt employees  are entitled to travel pay during normal work hours and when they are actively working outside of those hours. They aren't entitled to travel pay for doing their typical commute, according to the  Fair Labor Standards Act  (FLSA).

Non-exempt employees are typically paid an  hourly wage  and are paid less than $684 per week or $35,568 per year. 

These rules don't apply to exempt employees, and therefore it's up to you whether you want to pay them to travel.

What's more—your state may have some extra rules, so make sure to check your state's Department of Labor or Wage and Hour Division website.

When Do You Have to Provide Travel Time Pay for Hourly Employees?

But when, exactly, are these employees paid to travel? Compensable work time needs to be paid when employees travel:

  • Locally: You need to pay employees when they travel locally as part of their regular duties (for example, from your office to a supply store). And if that travel happens outside of the employee's regular workday hours (even if they're only waiting to travel, like sitting at a bus stop or train station)? You still need to pay.
  • Between worksites: Employees get travel pay when traveling between worksites. For example, a courier who transports materials between different job sites must be paid for the time spent traveling. Similarly, plumbers who travel between customers' homes are eligible for travel pay.
  • For special one-day assignments: You must provide travel pay for hourly employees who travel out of town, even if they return home at the end of the workday—though you can deduct the employee's normal commute time from the total payment. For example, let's say an employee spends a total of two hours traveling to and from a work conference (which takes place during normal working hours). Because her typical daily commute takes 30 minutes, you would only need to pay for 1.5 hours of traveling (in addition to regular hourly wages).
  • Overnight: Employees traveling overnight are due travel pay during their regular working hours and any time they spend working outside of those regular hours (for example, participating in late-night conference calls while on a train). You also need to pay employees for traveling during their regular working hours, even on non-working days, like weekends, holidays, or their normal days off.

Bonus tip : The best way to track travel time for your employees? Time tracking software like  Hourly . Workers clock in right from their phones, and the platform automatically tracks their location, hours and what project they're working on—which you can see in real-time. Another perk? You can run payroll with the click of a button.

How Much Do You Have to Pay Employees for Travel Time?

Employees traveling for work need to be paid at least the minimum wage, but they can be paid more or less than their normal pay rate.  

If you want to pay a different rate than an employee's hourly wage, you'll need to:

  • Tell the employee they will be paid a different rate before they begin their trip.
  • Make sure the hourly rate for travel pay doesn't cause the employee's total pay for all workable hours to  fall below minimum wage  (state, local or federal—whichever is highest) or result in incorrect overtime pay.
  • Ensure that you're not violating their employment contract.

This gives you the flexibility to offer a higher rate of pay as an incentive for traveling outside of regular business hours—or, if you decide to pay less than their typical rate (but still minimum wage or above!), it can help make sure that paying for travel won't interrupt your cash flow or cause other financial concerns for your company.

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When Do You NOT Have to Provide Travel Time Pay for Hourly Employees?

Exempt employees—like outside salespeople, executives, managers, administrators, and even IT personnel—aren't entitled to travel pay. And non-exempt workers? They're  not eligible for travel pay  when they are:

  • Commuting: An employee's commute—the time spent driving from their home to work (and from work to home)—doesn't qualify as travel time. This also includes the time spent driving from accommodations/lodging (like a hotel) to a work location, like a client's office or conference center.
  • On break or during personal time : Non-exempt employees aren't entitled to travel pay during breaks (including meal periods and time spent sleeping) or when they can spend their time how they see fit. In other words, you don't need to pay for traveling during the time an employee can go shopping, sightseeing, or out to eat.
  • Away from work and not working : Employees on overnight travel or business trips don't need to be paid outside of regular working hours  unless  they're working during that time period. For example, an employee who regularly works 9 a.m. to 5 p.m. Monday through Friday only needs to be paid for traveling on a Saturday if they travel during their normal working hours (i.e., 9 a.m. to 5 p.m.)—unless they're working  outside  of those hours too (like answering customer support emails or counting inventory).
  • A passenger: You don't need to pay for travel when an employee is a passenger (in any sort of vehicle) and isn't doing work outside of regular work hours. The only exceptions occur when you  require  an employee to drive the vehicle or be actively engaged in working (like riding to a job site while handling customer calls or riding as a passenger in a client's vehicle).
  • Choosing to drive themselves : If you offer to pay for an employee's travel method (like airfare, a bus ticket, or a train ticket) and the employee requests to drive instead, the employee is only entitled to travel pay while driving during their regular work hours. In other words, if an employee requests to drive themselves vs. taking public transit, you don't need to pay for travel outside of the employee's regular shift.

In other words, a non-exempt employee  isn't entitled to travel pay  unless they are driving, traveling during their normal working hours, or actively working while traveling.

Does Travel Time Count Towards Overtime?

Yes, travel time counts toward overtime, and you'd owe them 1.5 times their regular rate for any hours worked over 40 while they're traveling.

What if your pay rate for traveling is different from an employee's regular wages? Then it gets a little more complicated. 

In that case, you need to use the weighted average of the two overtime rates to get their final pay. Here's an example: 

Let's imagine one of your employees is pulling a 40-hour week at the office. Their rate? $15 per hour. So that gives them $600 for their regular workweek (that's 40 hours multiplied by $15 per hour). Now, during that same week, they also spent 8 hours traveling as overtime, for which you're paying them $11.25 per hour. This gives them an extra $90 (which is 8 hours multiplied by $11.25 per hour).

Add these together, and their total straight-time pay for the week is $690.

Now, to figure out their average rate for the week (including travel time and regular office time), you need to divide this total pay by their total hours worked. In this case, it's 48 hours in total (40 regular hours plus 8 overtime hours). So, $690 divided by 48 hours gives you a weighted average rate of $14.375 per hour.

But they've already been paid for all 48 hours at their respective rates, right? For the 8 hours of overtime, what you owe them is an extra half of that weighted average rate. That's what we call the "overtime premium." Half of $14.375 is about $7.19. So, the overtime pay would be 8 hours (overtime) times $7.19, which comes out to $57.52.

To get their final paycheck, you add this overtime pay to their straight-time pay. So, $690 (straight-time pay) plus $57.52 (overtime pay) equals $747.52. As a business owner, using the weighted average method to calculate the overtime rate, you'd be paying out $747.52 for this employee's week of work, including their overtime.

Additionally, if you pay for travel time that isn't  required  to be paid (like commuting), you  can't count them as hours worked  for overtime purposes.

Travel Time Pay Best Practices

Handling travel pay can be complex and difficult at first. But it doesn't have to be! Use these best practices to simplify paying your employees for working on the go.

Create a Travel Policy

If your small business sends employees to different locations, you need to establish a written travel policy—and include it in your employee handbook. 

Your travel policy should outline which situations result in compensable travel time (like attending conferences or visiting different job sites), as well as any exclusions where employees won't be compensated (like an employee's regular commute or traveling as a passenger on non-working days).

If you pay a different hourly rate for time spent traveling, make sure to include it in your policy. Then, have employees sign the policy to acknowledge they understand it and agree to its terms—and then add the signed document to their employee file.

Track Hours Traveled

As a small business owner, you need to track employee travel time to follow  labor laws  and make sure their paychecks are accurate. 

Though you can ask employees to record and document the time they spend traveling—which can help you make sure your records are accurate—the responsibility for doing so is ultimately on you.

Pay for or Reimburse Travel Expenses

The U.S. Department of Labor (DOL) doesn't require you to pay for your employee's travel expenses.

Still, if you're sending your employees out of town, you  should  pay for the cost of travel—like tickets and lodging. 

If you don't, your employees are almost guaranteed to get frustrated that they have to pay for expenses out of pocket—and that frustration could lead to issues with employee engagement and retention.

When writing your travel policy, outline which travel expenses your company covers. If you expect employees to front some or all of the travel expenses, detail your procedure for requesting reimbursement and how to track expenses (like mileage or airfare).

You might also want to provide some form of  per diem  or stipend that helps employees pay for small travel expenses, like food. 

This can either be an allowance per meal period (like $15 for breakfast, $20 for lunch, and $40 for dinner) or a specific amount that the employee can use throughout the trip (like $50 per day or $150 for the weekend). Have your employees save and submit their receipts to avoid taxation. You can also consider a company card to lessen the burden on your team's bank account.

Check With Your State's Laws

In addition to federal law, some state laws apply additional regulations to travel time. This means rules can vary based on the state you operate in. For example,  compensable work time  in California includes riding as a passenger in a vehicle when traveling for work.

But which set of employment laws should you follow? You should apply the set of rules that provide the highest payment to your employees. So, if your state regulations specify that certain activities qualify as compensable—even if the FLSA does not—you need to pay for time spent traveling.

(For guidance about your state's specific laws and guidelines, contact your  state's Department of Labor  and local  Wage and Hour Division .)

FAQs About Travel Time Pay for Hourly Employees

Do remote/hybrid workers qualify for travel pay.

A  remote or hybrid worker  qualifies for travel pay when you require them to travel to your place of business or another venue (like a conference hall, training facility, or client location) and they:

  • Live far away from the regular worksite (requiring an overnight stay or significant travel time)
  • Are only expected to work on-site by request or on a day they're not normally required to be on-site

However, remote/hybrid workers  aren't  entitled to travel pay when:

  • Your policy specifies that both an employee's home/remote office and your office are considered primary work locations
  • They are expected to work on-location on certain days
  • The time spent traveling to the office is considered an employee's commute (even if they are a remote or hybrid worker)

Do employees who drive/travel as part of their job qualify for travel pay?

The  FLSA requires  you to pay employees their regular hourly wages when they are driving or traveling as part of their job responsibilities. For example, bus or delivery drivers should be paid their regular wages while on the job.

Compensating Your Employees for Traveling Doesn't Need to Be Difficult

Traveling for business can take a toll—both on the road and off. Paying travel time for hourly employees can incentivize them to hit the road when necessary and make up for the time they spend away from their families and lives. 

Once you've determined which employees qualify for travel time pay, implement a clear travel policy (that adheres to state and federal law) and use management tools (like  Hourly !) to maintain accurate records and compensate your employees for time spent traveling.

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When Must I Pay Employees for Travel Time?

Travel Time vs. Commuting Time

Image by Jo Zixuan Zhou © The Balance 2020 

In general, your business should pay employees for the time they spend traveling for work-related activities. You don't have to pay employees for travel that is incidental to the employee's duties and time spent  commuting  (traveling between home and work). Travel time can include both local trips and travel away from home. 

Travel vs. Commuting Time 

Commuting is going back and forth to work. Everyone (at least everyone who doesn't work at home) commutes to a job. Commuting time is personal time, not business time. The IRS does not allow businesses to deduct commuting time as a business expense, and employees should not be paid for the commuting time.     

The Department of Labor (DOL) discusses employees who drive employer-provided vehicles. The DOL considers the time spent in home-to-work travel by an employee in an employer-provided vehicle, or in activities performed by an employee that are incidental to the use of the vehicle for commuting, generally is not "hours worked" and, therefore, does not have to be paid.  

Here's a possible rule of thumb: If your business authorizes a trip by an employee, no matter how the employee travels (car, train, bus, etc.) you should pay for the employee's travel time. 

Travel time for hourly and salaried employees may be counted differently. Pay to employees for local travel time is only applicable to non-exempt (hourly) employees, not to exempt (professional or managerial) employees.     Exempt employees are paid for their expertise by the job, not by the hour.  

Different Types of Travel Time:

Home to Work Travel , as explained above, is commuting time, not work time, and it's not paid.

Travel on Special One Day Assignment in Another City. The DOL says "the time spent in traveling to and return from the other city is work time," but they note that you may deduct the time the employee would spend commuting.

Sara works in an office in your company, but you send her to another city on a special assignment. She leaves from her home, goes to the city, and comes back home the same day. She spends 3 hours traveling (1 1/2 hours each way) from home to the other city. She would normally spend 30 minutes total driving from her home to work and back, so you could deduct the 30 minutes and pay her for 2 1/2 hours of travel time.

Travel That's Part of the Employee's Normal Work. Time an employee spends traveling is part of the job. You must count this time as work time. The time the employee spends going to the first job site, and home from the last job site, is commuting time and isn't paid.  

An LPN (licensed professional nurse) works for a nursing facility and travels between the two locations of this facility, providing care for patients at both locations. Her daily travel time between these locations must be included in her pay because she is not commuting. But she can't count the time driving from home to the first location or the time back home from the last location.

Travel Away from Home. If travel includes an overnight stay it is travel time. The DOL doesn't include travel away from home outside regular hours as a passenger on an airplane, train, boat, bus, or car as work time. But you must count hours worked on regular working days and work hours on nonworking days (weekends and holidays).  

If an employee travels from Cleveland to Pittsburgh for a two-day seminar at the direction of your company, you must pay for the hours the employee would have worked in a normal workday for each of those days, even if they were on Saturday or Sunday.

Incidental vs. Work Travel: Paid or Not Paid?

  • An employee drives to work from his home every day. You ask him to stop on his way and pick up bagels for the staff meeting. This driving time is not paid. Time commuting to work is never paid time; the time to stop for the bagels is "incidental" to the commuting and is not part of the employee's job. 
  • You ask an employee to drive to a store on work time to get bagels for the office meeting. If the employee makes this trip during normal work hours, he or she should be paid. 

Also, you might want to contact an employment attorney to discuss these issues. 

Paying for Travel Expenses

In addition to paying employees for travel time, you should pay their expenses for travel. The Department of Labor doesn't require reimbursement for travel expenses, but it makes sense to pay employees if you require them to travel.   Your business can deduct employee travel expenses as a business expense.   If employees mix business and personal travel, you need to sort out the part that is business-related and pay only these expenses. 

State Regulations on Paying for Employee Travel

Check with your state labor department to see if there are any rules which might override the federal rules. Contact the nearest local office of the U.S. Department of Labor for information on specific instances of travel time that affect your business.

Internal Revenue Service. " Publication 535 (2019): Business Expenses ," Page 5. Accessed May 26, 2020.

Internal Revenue Service. " Travel & Entertainment Expenses ," Page 3. Accessed May 26, 2020.

U.S. Department of Labor. " Travel Time ." Accessed May 26, 2020.

Electronic Code of Federal Regulations. " Travel Time ." Accessed May 26, 2020.

U.S. Office of Personnel Management. " Fact Sheet: Hours of Work for Travel ." Accessed May 26, 2020.

U.S. Department of Labor. " Fact Sheet #17D: Exemption for Professional Employees Under the Fair Labor Standards Act (FLSA) ," Pages 1-3. Accessed May 26, 2020.

U.S. Department of Labor. " Fact Sheet #22: Hours Worked Under the Fair Labor Standards Act (FLSA) ." Accessed May 26, 2020.

U.S. Department of Labor. " Opinion Letter FLSA 2018 ," Page 2. Accessed May 26, 2020.

U.S. Department of Labor. " Reimbursed Travel Expense Payments ," Page 1. Accessed May 26, 2020.

Internal Revenue Service. " Topic No. 511 Business Travel Expenses ." Accessed May 26, 2020.

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Rules of the road: Travel time pay for hourly employees

Business Management Daily Editors

When to pay nonexempt workers for travel locally or on overnight trips baffles many employers. Mistakes can spark anything from mild complaints to class-action lawsuits—a black eye for you either way.

The Fair Labor Standards Act (FLSA) has rules on travel time pay for hourly employees. The best way to decipher them is using a case study.

Home-to-work travel

Let’s say Robert Smith is a nonexempt employee who sometimes travels for work. It’s clear that you don’t need to pay for his commute to work; the Portal-to-Portal Act of 1947 covers that.

But suppose you ask Robert to pick up some company documents along the way to work. In that case, you’d pay him from the time he picks up the documents. The law says that if the travel is for the company’s benefit, it is compensable. If it is purely commuting, it’s not.

HR Memos D

Working at different locations

The U.S. Department of Labor says travel time spent by employees as part of their principal activity, such as travel among job sites during the workday, is considered “work time” and must be paid.

For example, say Robert reports to headquarters before making his rounds to visit other company locations. In that case, the commute to headquarters is commuting time, but all travel from headquarters until his last stop is paid time.

Time from the last stop to home is unpaid commuting time. Any travel that is a regular part of the employee’s job is paid time.

Out-of-town day trips

Generally, time spent traveling to and returning from the other city is work time. You can exclude the employee’s regular commuting time and meal breaks.

For example, say Robert drives to the airport and takes a 6 am flight to a seminar in Chicago. He arrives at 8:30 am and takes a cab to the seminar. The seminar runs from 9 to 5, with an hour lunch break. After the seminar, he chats with friends for an hour before taking a cab back to the airport. He flies back to his base city and drives home. Which hours count as “compensable” time?

You don’t have to pay Robert for his trip to the airport; that’s commuting time. But you do have to pay him from the time he arrives at the airport through his flight, cab ride and during the Chicago seminar. (You don’t have to pay for his lunch period.)

Do you pay for Robert’s chatting time with friends? If there are no other flights home until later, yes. But if Robert simply opts for a later flight to swap stories with his buddies, the answer is “No.” The cab back to the Chicago airport and the flight home are paid time. The drive home from the airport is considered unpaid commuting time. Final tip: Make sure nonexempt employees understand when they will be paid before they travel. Spell out the rules clearly in your employee policies.

Know the FLSA rules for rest periods, on-call time, training and more

In addition to travel time, employers face many other questions about what counts as “compensable time” under the FLSA. Here are answers to some of the stickier issues:

ON-CALL TIME. Employees required to remain on call on the employer’s premises are considered working while on call. Employees required to remain on call at home (or who can leave a message where they can be reached) are considered not working (in most cases) while on call.

WAITING TIME. Employees are paid for waiting time when they are “engaged to wait.” Employees fall under that definition if they’re required to be at a work site while waiting to perform work.

REST AND MEAL PERIODS. You typically must pay employees for short rest periods, usually 20 minutes or less. You generally don’t need to pay employees for bona fide meal periods (typically 30 minutes or more).

Employees must be completely relieved from duty during unpaid breaks and meal periods. Example: If you require your assistant to eat lunch at her desk in case a call comes in, she must be paid because she hasn’t been fully relieved of her duties.

Note: Many states set their own rest-break and meal-break laws. For more information on state break requirements, see www.dol.gov/general/topic/workhours/breaks .

SLEEPING TIME. Employees required to be on duty for less than 24 hours are considered “working,” even if they’re permitted to sleep. Employees required to be on duty for 24 hours or more may agree with their employer to exclude from hours worked any scheduled sleeping periods of eight hours or less.

TRAINING PROGRAMS AND MEETINGS. You don’t have to pay employees for time spent at training programs, lectures or similar activities as long as they meet the following four criteria: (1) The event is outside normal hours. (2) It’s voluntary. (3) It’s not job-related. (4) No work is performed during that time.

Source: Adapted from DOL Fact Sheet No. 22 .

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Understanding and Managing Travel Time in UK Employment Law

Navigating Travel Time Laws - Kingswood Group

Understanding the importance of travel time in employment law is vital for businesses. Misinterpretations can lead to legal complications, affecting both operational efficiency and employee relations. This article aims to clarify the complexities surrounding travel time to work, ensuring your business stays compliant and informed.

Jump to a topic:

What is the Travel Time to Work Law?

Does travel time law affect your business, breaking down travel time classifications.

  • Compensation For Travel Time
  • Employee Wellbeing and Compliance in Travel Time Management

Key Takeaways

The Travel Time to Work Law in the UK primarily refers to regulations that determine whether the time employees spend travelling for work is considered part of their working hours. The cornerstone of this legislation is the Working Time Regulations 1998, supplemented by subsequent legal interpretations and rulings, such as the significant European Court of Justice Ruling of 2015.

Your business is likely to be impacted by travel time laws if:

  • It employs mobile workers who travel to different locations as part of their jobs.
  • Your employees undertake business travel as part of their workday.
  • You operate in sectors like sales, field services, healthcare, etc., where travel is integral to job roles.

Regularly reviewing employment contracts and travel policies is crucial for ensuring that your business practices align with these laws.

Determining whether travel time counts as work time in the UK depends on several factors and specific circumstances:

General Commuting

  • Definition: Regular travel from home to the primary workplace and back.
  • Typical Classification: This type of travel is usually not considered part of the working day under UK employment law. The rationale is that this time is not spent under the employer’s direction or performing job duties.
  • Exceptions: In rare cases, if commuting involves significant work-related responsibilities or detours to specific work tasks, it may be considered work time.

Mobile Workers

  • Who They Are: Workers without a fixed or habitual workplace, such as field service engineers, sales representatives, or home care staff.
  • Classification: Travel to the first and last appointments of the day is usually considered working time. This ruling, as clarified by the European Court of Justice in 2015, acknowledges that such workers are undertaking these travels as an integral part of their job.
  • Implications: This classification means that employers need to consider this travel time when calculating working hours, rest periods, and potential overtime.

Business Travel:

  • Context: Travel that occurs during the workday, distinct from normal commuting. This includes journeys to meetings, site visits, training sessions, or other work-related activities.
  • Classification: This is generally regarded as working time. The key factor is that this travel is a directed activity, undertaken for the employer’s benefit and often within work hours.
  • Considerations for Employers: Employers should clearly define what constitutes business travel in their policies and how it is recorded and compensated.

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Compensation for Travel Time: What Businesses Need to Know

Understanding the nuances of compensation for travel time is crucial for businesses to ensure compliance with employment laws and fair treatment of employees.

For Business and Mobile Workers

  • When Paid : Travel time classified as working time is generally compensated. This is particularly relevant for mobile workers or those engaged in business travel. For instance, if a home care provider travels directly to a client site or a sales representative moves between appointments, this travel time is typically counted as working hours and, therefore, compensated.
  • Calculating Pay : The approach to calculating pay for travel time can differ from one business to another. Some employers might pay travel time at the normal hourly rate, while others might offer a specific travel time rate, which could be different from the standard rate. It’s crucial for these details to be explicitly stated in employment contracts and clearly communicated in company policies to avoid misunderstandings.
  • Impact on Working Time Regulations and NMW : Ensuring the correct classification of travel time is vital to comply with the Working Time Regulations (WTR). Incorrectly classifying travel time can result in unintentional breaches of the 48-hour working week limit set by the WTR. Similarly, when calculating the National Minimum Wage (NMW), employers must consider the total hours worked, including paid travel time, to ensure employees’ pay does not fall below the NMW for their total working hours.

Scenario : An IT consultant is based out of a central office in the city. Each morning, they commute from their home to the office. From there, they spend the day travelling to various client sites for meetings and consultations before returning to the office in the evening and then commuting back home.

Morning Commute (Unpaid) : The consultant’s initial commute from home to the office is considered a regular, unpaid commute. This is standard practice under employment law, as it’s the typical travel to the primary workplace that does not involve direct execution of job duties.

Daytime Travel to Clients (Paid) : Once the consultant leaves the office to visit client sites, this travel time becomes part of their working hours. Since visiting clients is an essential part of their job responsibilities, travelling between client locations is compensable. This includes all the travel from the office to the first client, between clients, and back to the office at the end of the day.

Evening Commute (Unpaid) : However, the final commute from the office back home is not compensated. Similar to the morning commute, this travel is considered regular commuting and falls outside of paid working hours.

  • Typically Unpaid : The standard interpretation under UK employment law is that regular commuting – travel from home to a regular workplace and back – is not paid. This is based on the premise that such commuting is not carried out under the employer’s direction or as part of the employee’s core job duties.
  • Exceptions : However, there are notable exceptions. If the commute involves additional work-related tasks – for example, carrying company equipment to a worksite or detours for client meetings – it may be considered compensable work time. Additionally, if an employee has no fixed work location and their first or last destination varies daily, their travel may also be classed as working time. s.

Employee Well-being and Compliance in Travel Time Management

Managing travel time effectively is a multifaceted task that goes beyond mere adherence to legal standards. Equally important is ensuring the well-being of your workforce, a vital component in fostering a productive, engaged, and satisfied team.

Ensuring Adequate Rest Breaks

  • Mandatory Rest Periods : Under UK employment law, it’s crucial to provide workers with a minimum of 11 continuous hours of rest every 24 hours. Additionally, if the workday exceeds six hours, employees are entitled to a 20-minute uninterrupted break. Importantly, when travel time contributes significantly to the length of the working day, you may need to adjust break schedules to maintain legal compliance and support employee well-being.

Complying with Working Hours Limits

  • 48-Hour Workweek : Remember, the total working hours, including travel time, should not surpass 48 hours per week, as per the Working Time Regulations. Should this limit be exceeded regularly, the employee must have a signed opt-out agreement. Without such an agreement, you may need to rethink workloads or consider increasing your staffing.

Effective Travel Time Monitoring and Optimisation

  • Transparent Monitoring : Align with the European Court of Justice’s directive by accurately recording travel times. Ensure this monitoring is done transparently and in compliance with GDPR to respect employees’ privacy rights.
  • Route Optimisation : Encourage and enable employees to choose the most direct routes for travel. This not only reduces total working hours but can also decrease fatigue and enhance productivity.

Regular Updates to Employment Contracts

  • Contractual Accuracy : Continuously update employment contracts to reflect the actualities of working hours, break entitlements, opt-out clauses, scheduling responsibilities, and work locations. This clarity benefits both the employer and employee by setting clear expectations and maintaining legal compliance.
  • Incorporating Flexibility : Particularly for mobile workers, ensure that contracts accommodate the flexible nature of their roles, including variable start and end times based on travel.
  • Definition and Scope : The UK’s Travel Time to Work Law, governed by the Working Time Regulations 1998 and the European Court of Justice Ruling of 2015, sets the framework for determining if travel time is part of working hours.
  • General Commuting : Regular travel from home to the workplace typically is only counted as working time if it involves specific work-related tasks.
  • Mobile Workers : Employees without a fixed workplace, like field technicians or home care staff, usually have their travel time to and from their first and last appointments counted as working hours.
  • Business Travel : Travel during the workday for business purposes, such as meetings or site visits, is generally regarded as working time.
  • Compensation for Travel Time : It’s essential for employers to clearly define and communicate compensation methods for travel time, especially for mobile workers and during business travel, ensuring compliance with employment laws.
  • Adherence to WTR and NMW : Accurate classification of travel time is key for adhering to Working Time Regulations and ensuring employees’ wages meet or exceed the National Minimum Wage.
  • Remote and Flexible Work Adaptations : As work arrangements evolve, reassessing and updating travel time policies is necessary to ensure they remain fair and compliant while also considering employee well-being.
  • Importance of Regular Policy Review : Consistent policy reviews and clear communication are crucial in aligning with travel time regulations, enhancing transparency, and supporting a positive work environment.
  • Prioritising Employee Well-Being : Beyond legal compliance, consider the impact of travel time on employee well-being, work-life balance, and overall job satisfaction.

Frequently Asked Questions

For mobile workers without a fixed workplace, ‘working time’ includes travel to the first and last appointments of their day. This was clarified in the European Court of Justice’s 2015 ruling, recognising that such travel is integral to their roles.

No, regular commuting – the travel from home to a regular workplace and back – is generally not considered working time under UK employment law.

Yes, there are specific exceptions where commuting time can be considered work time under UK employment law. These exceptions typically occur when the commuting involves additional work-related responsibilities or tasks. For instance:

Detours for Work Tasks: If an employee is required to perform a task or attend a meeting at a location different from their usual workplace, the travel time to and from this location could be considered working time.

On-Call Scenarios: In cases where employees are on-call and must travel to a workplace or another location to address a work situation, this travel time can be classified as working time. This is often applicable in sectors like healthcare, emergency services, or IT support.

Travel as Part of the Job: For employees whose job roles specifically include traveling, such as salespeople visiting clients or technicians going to different sites, the travel time is part of their working hours.

Irregular Work Locations: Employees who do not have a fixed workplace and travel to different locations as part of their regular work routine may have their travel time considered as working time.

It’s important for employers to clearly define in their policies how these scenarios are handled and to ensure that any such travel time is recorded and compensated according to legal requirements.

Compensation for travel time varies. Travel classified as working time, especially for mobile or business travel, is typically paid. The rate and method of compensation should be outlined clearly in employment contracts and policies.

Yes, the application of travel time laws can vary significantly across different sectors, each with its unique considerations:

  • Healthcare Sector:  In healthcare, professionals like home care workers or community nurses often travel as part of their workday. Their travel time between patient visits is typically considered working time. Additionally, on-call situations, where staff must travel to a healthcare facility or a patient’s home, also constitute working time.
  • Sales and Consulting:  In sales or consulting, travel to client meetings, regardless of the location, is often considered working time. This applies even if the travel starts from the employee’s home rather than the usual workplace. .
  • Transportation and Logistics:  For drivers, pilots, and other transportation roles, travel time is intrinsic to the job and is counted as working time. However, the time spent commuting to the first pick-up location or from the last drop-off location may not always be included.
  • Office-Based Roles:  Generally, in standard office-based roles, regular commuting is not considered working time. However, travel during the workday for business purposes, like off-site meetings, is typically counted.

Each industry might have specific contractual agreements or policies that further define how travel time is considered and compensated. Therefore, it’s important for businesses in each sector to understand and apply these laws accurately, considering their unique operational models and employee roles.

To ensure compliance with travel time regulations, businesses can take several proactive steps:

  • Stay Informed:  Keep abreast of any changes in employment law related to travel time.
  • Policy Revision:  Regularly review and revise travel policies to reflect current laws and business needs. Ensure these policies are tailored to the specifics of your industry and the nature of your employees’ work.
  • Digital Solutions:  Implement reliable digital time-tracking systems to accurately record travel and working hours, particularly for mobile employees.
  • Integration:  Ensure these systems integrate smoothly with payroll and HR systems for efficiency and accuracy.
  • Employee Awareness:  Clearly communicate any updates or changes in travel time policies to all employees. This ensures everyone understands what is expected and how travel time is recorded and compensated.
  • Managerial Training:  Train managers and supervisors on how to implement and monitor these policies effectively.
  • Maintain Records:  Keep detailed records of employees’ travel and working hours. This documentation is crucial for both internal audits and potential legal inquiries.
  • Seek Expertise:  Consult with legal experts specializing in employment law to ensure your policies comply with legal requirements. This is particularly important for businesses with complex travel scenarios or those operating across different regions with varying regulations.
  • Open Channels:  Establish a system for employees to provide feedback or raise concerns about travel time and its recording. Addressing these concerns can prevent misunderstandings and potential legal issues.
  • Respond to Changes:  Be prepared to adapt policies in response to changing work patterns, such as increases in remote working or changes in business operations.

By taking these steps, businesses can comply with travel time regulations and foster a transparent, fair, and efficient working environment. Regular updates, clear communication, and the use of technology are key in managing the complexities of travel time in the modern workplace.

Need Expert Guidance?

If you’re navigating the complexities of travel time regulations and adapting to the modern workplace, our team of HR professionals is here to help. We offer personalised advice and solutions tailored to your specific industry and organisational needs. Contact us to ensure that your travel time policies are not only compliant but also effective and fair.

The information provided in this article, “Navigating Travel Time Regulations | Understanding UK Employment Law,” is for general informational purposes only and should not be construed as legal advice on any subject matter. While we strive to present up-to-date and accurate information, the laws and regulations regarding travel time and employment may change and vary by jurisdiction.

Content last reviewed 23rd November 2023

Sarah McKee-Harris

Sarah McKee-Harris Founder, Director & CEO

Sarah has 16 years of experience in HR tTalent Acquisition, working extensively in both London and Essex. Her approach to HR is rooted in a simple yet effective philosophy: taking the time to listen, understand, and question our clients to pinpoint their unique business needs.

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1 July 2022 changes to Social, Community, Home care & Disability Services Award

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Find out more about the 1 July 2022 changes to part-time employee and other entitlements under the Social, Community, Home care and Disability Services Industry (SCHADS) Award.

On this page:

Minimum payments for some casuals, minimum payments for part-time employees, how the minimum payment changes work, damaged clothing and laundry allowances, overtime for part-time and casual employees, enterprise agreements, remote work, more information.

From the first full pay period starting on or after 1 July 2022, the minimum payment for casual home care employees increases from 1 hour to 2 hours.

Casual employees can work for more than 1 client during their minimum payment period.

From the first full pay period starting on or after 1 July 2022, part-time employees will need to be paid for the following minimum hours for each shift or work period in a broken shift:

  • social and community services employees (except when doing disability services work) – 3 hours
  • social and community services employees doing disability services work – 2 hours
  • all other employees – 2 hours.

The requirement to be paid for these minimum number of hours is called a ‘minimum payment’.

Part-time employees can work for more than 1 client during their minimum payment period.

This is a new entitlement for part-time employees. Until 1 July 2022, there was no minimum payment for part-time employees under the SCHADS Award.

Learn more about part-time entitlements under the SCHADS Award at Part-time employees . Select the 'social, community, disability and home care services' industry to get tailored information.

Consultation requirements for different arrangements

Until 1 July 2022, employers and employees could previously agree that an employee will work shifts or periods of work in broken shifts that are less than the new minimum payments.

If an employer and an employee made this kind of agreement before 1 February 2022, they need to:

  • discuss the new minimum payment requirements
  • genuinely try to reach an agreement on a variation to the employee’s current hours of work that’s consistent with the new minimum payments and suits the employee’s circumstances.

If an employer and employee have discussed the agreement but can’t agree on a change, the employer can vary the agreement to meet the new minimum payments by giving the employee 42 days’ written notice of the change. This variation couldn't start before 1 July 2022.

These consultation requirements don’t stop an employer and an employee from agreeing to other changes to the agreement that are consistent with award provisions.

Learn more about the new provisions below:

  • broken shifts and broken shift allowances
  • client cancellation
  • travelling between clients
  • shift locations .

Broken shifts and broken shift allowances

A broken shift is a shift that is broken into 2 or 3 parts by an unpaid break (or breaks), in a 12 hour period. For example, a broken shift could involve someone working for 2 hours followed by a 2 hour break, then working 3 hours. A meal break doesn’t break a shift.

From the first pay period starting after 1 July 2022, there are 2 broken shift allowances for social and community services employees when undertaking disability services work and for home care employees. The broken shift allowance will differ depending on whether the employee has 1 or 2 unpaid breaks in their broken shift. The number of unpaid breaks will determine the amount of the allowance.

An employer can roster an employee on a broken shift with 2 periods of work and 1 unpaid break. An employer and employee can agree that a broken shift will be worked with 3 periods of work and 2 unpaid breaks.

If an employee is required to work a broken shift, the minimum payment will apply for each period of work during that broken shift. The minimum payment period applies to all periods of work in a broken shift for both part-time and casual employees.

Example: Broken shifts from 1 July 2022

Jasmine is a part-time social and community services employee who performs disability services work. She is covered by the SCHADS Award. Jasmine is rostered for a broken shift to be worked in two parts in the morning and afternoon.

Jasmine works with her first client, Luca, for 90 minutes in the morning. She must be paid a minimum of 2 hours for this part of her broken shift to satisfy the new minimum payment requirement.

Jasmine has a 3 hour break before she sees her second client, Anthony. Jasmine works with Anthony for 2 hours in the afternoon and is paid for 2 hours.

Jasmine will be entitled to a broken shift allowance as she is working a broken shift.

Client cancellation

A client cancellation is when a client cancels a scheduled home care or disability service:

  • within 7 days of the service
  • where a full-time or part-time employee was rostered to provide the service.

This includes when a service is rescheduled by the client.

When a service is cancelled, the employer can either:

  • direct the employee to perform other work during those hours
  • cancel the whole shift, or
  • cancel the affected part of the shift.

If a shift is cancelled, the employer has to either:

  • pay the employee the amount they would have been paid if they had worked, or
  • provide the employee with make-up time (the same amount of hours of work at another time).

Make-up time

An employer can only provide an employee with make-up time if they give at least 12 hours’ notice of the cancellation of the original shift. If the employer doesn’t give this notice, the employee will still be paid for their hours.

Employers who elect to provide employees with make-up time must give at least 7 days’ notice for the new shift. This can be less if the employer and the employee agree. Employers also have to consult with employees in accordance with the consultation provisions in the SCHADS Award.

Make-up time has to be worked by the employee within 6 weeks of the cancelled service.

Make-up time can be worked with clients other than the client who cancelled the original service or in other areas of the employer’s business provided the employee has the skills necessary to perform the work.

Example: Cancelled shifts from 1 July 2022

Leo is a part-time home care employee. He is covered by the SCHADS Award.

Leo has 2 shifts scheduled with a client for the next week. One shift is scheduled for 8am Monday and one for 8am on Tuesday, each for 3 hours.

On Sunday night at 9pm, Leo’s employer calls him saying his shifts for the next 2 days have been cancelled by the client.

As there is less than 12 hours before the Monday morning shift, Leo will still be paid for 3 hours for the Monday shift even though he will not be working.

The employer asks Leo if he’d like to work make-up time for his Tuesday shift on Wednesday with a different client. Leo says he is happy to work make-up time the following Wednesday.

There is no payment for Leo’s Tuesday shift as it has been cancelled more than 12 hours in advance and he was given more than 7 days’ notice for the make-up time.

Travelling between clients

Part-time and casual employees can work for more than 1 client during their minimum payment period.

The time a part-time or casual employee spends travelling between clients during the relevant minimum payment period is counted as time worked and paid.

The travel provisions of the SCHADS Award still apply. Read more about travel entitlements on our Uniforms, vehicle and travel entitlements page. Simply select ‘Social, community, disability and home care services’ in the industry filter menu.

Shift locations

Shifts don’t need to be worked in a single location or with a single client.

The minimum payment applies once per period of work for employees who work at multiple locations. Travel time within the minimum payment period is considered as time worked and paid.

Example: Home care work from 1 July 2022

John is a part-time home care worker covered by the SCHADS Award who visits 2 clients during his shift.

John works with his first client, Petros, for 1 hour. He then drives 20 minutes to his second client, Annie, and cares for her for 40 minutes.

As John has spent time travelling during the minimum payment period, he is paid for this time and for the 2 periods of work completed. This is a total of 2 hours work (1 hour plus 20 minutes plus 40 minutes), which meets the new minimum payment requirement.

Employers will be required to cover reasonable costs associated with repairing or replacing an employee’s personal clothing. This applies to personal clothing that is soiled or damaged beyond repair while the employee is performing their duties, except for normal wear and tear.

A laundry allowance may also be payable for soiled clothing.

You can find more information on uniform entitlements under the SCHADS Award at Uniforms, vehicle and travel entitlements . Just pick the 'social, community, disability and home care services' filter to get information relevant to you.

The changes to the SCHADS Award clarify that part-time and casual employees who work hours outside the span of hours are entitled to overtime.

This overtime is paid at 150% for the first 2 hours and 200% thereafter on Monday to Saturday.

On Sundays, all overtime outside the span of hours is paid at 200%.

Check the rules for overtime under the award at When overtime applies . Choose the 'social, community, disability and home care services' option to get tailored advice.

If an employer and employee are covered by a current registered or enterprise agreement, these new provisions generally won’t apply to them. This is because they are new provisions for employees covered by the SCHADS Award.

Check if you’re covered by an agreement using the FWC – Find an agreement database .

New entitlements will apply from the first full pay period starting on or after 1 July 2022 to employees who perform remote work (as defined in the SCHADS Award).

An employee who is directed or authorised by their employer to be on-call to perform work may be engaged in remote work. Employees may also perform remote work when they are not on call if needed.

Remote work is work performed by the employee that is:

  • not part of their rostered ordinary hours (or for casual employees, not a 'designated shift')
  • not additional hours worked by a part-time employee or overtime after a regular shift
  • not required to be performed in the designated workplace.

Remote work performed between 6am and 8pm is paid at the employee’s minimum hourly rate of pay unless it attracts one of the following penalty rates:

These penalty rates apply instead of other loadings or penalty rates like:

  • public holidays.

The minimum payment for performing remote work is:

  • 15 minutes when employee is on call between 6am and 10pm
  • 30 minutes when employee is on call between 10pm and 6am
  • 1 hour when employee is required to work and was not on call
  • 1 hour when participating remotely in team meetings or training.

Any time worked continuously beyond the minimum payments above has to be rounded and paid up to the nearest 15 minutes.

When an employee is required to work remotely multiple times in 1 day, the minimum payment will apply on each occasion. However, only 1 minimum payment has to be paid where an employee works multiple times within a minimum payment period. For example, an employee who starts work at 11pm and who works for 2 periods of 5 minutes falling within a 30 minute period, is only entitled to 1 30 minute minimum payment.

Example: Remote work from 1 July 2022

Katie is a disability services support worker covered by the SCHADS Award.

Katie is a part-time employee who normally works Monday and Tuesday afternoons. Katie’s employer contacts her and directs her to be on call for the following day – Wednesday between 2pm and 12am. She will be entitled to the on call allowance.

On Wednesday, Katie receives a call from another disability care worker at a client’s home. She provides some assistance to that worker from a remote location for 30 minutes, between 3.30pm and 4pm. As this call is between 6am and 8pm, it is paid at Katie’s minimum hourly rate and meets the minimum payment of 15 minutes.

Later that night, Katie gets another call at 11pm about a different client. This job doesn’t take very long and Katie is able to complete it within 20 minutes. As the job was between 10pm and 6am, Katie will receive the minimum payment of 30 minutes. Because this call is outside the span of hours, it will be paid at 150% of her normal rate.

Workplace information

We have new and expanded information for employers and employees on the new provisions available at:

  • Part-time employees
  • Hours of work
  • When overtime applies
  • Annual leave
  • Uniforms, vehicle & travel entitlements

Just select the 'social, community, disability, and home care services' industry to get tailored information.

We also have more information available for the SCHADS Award in our Library. See our Library articles:

  • 24 hour care in the Social & Community Services Award
  • Casual shiftworkers in the Social & Community Services Award

You can also access a copy of the award at SCHADS Award .

You can read the FWC decision and final determination about these changes on the FWC website.

Keep up to date

Subscribe to email updates to keep up to date on future workplace law changes to the SCHADS and other awards.

The Fair Work Ombudsman acknowledges the Traditional Custodians of Country throughout Australia and their continuing connection to land, waters, skies and communities. We pay our respects to them, their Cultures, and Elders past, present and future.

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The Fair Work Ombudsman is committed to providing you with advice that you can rely on. The information contained in this fact sheet is general in nature. If you are unsure about how it applies to your situation you can call our Infoline on 13 13 94 or speak with a union, industry association or a workplace relations professional.

Printed from fairwork.gov.au Content last updated: 2023-10-11 © Copyright Fair Work Ombudsman

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If someone travels for their job - Working time rules

  • Understanding the Working Time Regulations
  • The 48-hour weekly maximum
  • Being on call
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If someone travels for their job

  • Jobs with different rules
  • Agreeing a change – relevant agreements

In some cases, travel time to and from work counts as working time.

If an employee has a fixed place of work

If an employee has a fixed place of work (such as an office they go to every day), their regular travel time to and from work does not usually count as working time.

If an employer wants to count this travel time as working time, they can.

Travel time while at work will usually count as working time, for example when travelling:

  • from one client to the next
  • from an office to a meeting elsewhere

Find out about the maximum hours an employee can work in a week

If the employee has no fixed place of work

Some jobs have no fixed place of work. These are often jobs where the employee spends a lot of time visiting customers or clients. People who do this work are sometimes known as 'peripatetic workers'. 

These types of jobs can include:

  • care workers
  • plumbers and other tradespeople
  • teachers who work at different schools over the working day
  • travelling salespeople

Travel between home and work is likely to count as working time for peripatetic workers. This is because during this time, the person is classed as doing work for their employer – for example, the employer may change or add tasks.

Pay when travel time counts as working time

When travel time counts as working time, the pay an employee gets depends on the terms of the employment contract. 

When calculating pay the employer must follow the law on the National Minimum Wage. It includes different rules on how working time affects minimum wage calculations.

  • use the minimum wage calculator on GOV.UK
  • find out more about how minimum wage is calculated on GOV.UK

If you like, you can tell us more about what was useful on this page. We cannot reply – so do not include any personal details, for example your email address or phone number. If you have any questions about your individual circumstances, you can contact the Acas helpline .

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DOL Opinion Letter on Traveling Home Health Aide Pay Is a Good Reminder for All Employers: Remember Travel Time!

Do you have to pay an employee for travel time? This question isn’t always easy to answer and can be confusing for employers.

In many industries, employees regularly travel during their workday. In general, when exempt executive, administrative or professional employees or outside sales employees travel, employers need not worry about travel time pay since the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA) and most state laws do not apply to these employees.

However, a recent U.S. Department of Labor (DOL) Opinion Letter reminds employers that travel time for non-exempt employees is an important but often overlooked area where even conscientious employers can find themselves in violation.

In Opinion Letter FLSA2018-28, a home health aide agency asked the DOL to approve its pay practices for traveling home health aides.  The agency provides services to clients in their homes, which sometimes requires its home health aides to travel during the day.  The employer agency stated that “[a] typical standard rate of pay is $10.00 per hour with a client, including travel time.

Although the Opinion Letter does not specify, it appears that only time spent with a client is compensated, not travel time.  The employer agency stated that, when calculating pay, it made sure to divide all remuneration earned by all hours worked in a workweek, including travel time, and ensured it was above the applicable federal and state minimum wage.  It also stated that when an employee worked more than 40 hours in a workweek, they would be paid time and a half for all hours over 40 at a rate of $10.00.  The DOLs Opinion Letter response though only two pages long, is chocked-full of important reminders for all employers.

Compensable Travel Time for Non-Exempt Employees

Travel time may or may not need to be counted as hours worked under the FLSA depending on the nature of the travel.  An employee’s regular commute to and from work is generally not considered hours worked under the FLSA. However, significant travel for an after-hours emergency may need to be included as hours worked.  Special rules also apply when non-exempt employees travel to and from another city for work during a single day (both travel and work time generally must be counted as hours worked) or when a non-exempt employee’s travel keeps them away from home overnight (travel during regular work hours generally must be counted, but not time as a passenger during non-working hours).  Outside of these relatively narrow exceptions, all other time spent by an employee in travel as part of his or her job duties, such as travel from job site to job site during the workday, must be counted as hours worked.

Why Travel Time Matters Under the FLSA

Employers and employees alike often overlook travel time when calculating hours worked during a workweek, but properly counting travel time is essential to compliance with the FLSAs minimum wage and overtime requirements.  The FLSA requires that a non-exempt employees regular rate of pay equal or exceed the federal minimum wage currently $7.25 per hour.  An additional overtime premium of at least 1.5 times the employees regular rate” must also be paid when an employee works more than 40 hours in a workweek.  An employees regular rate of pay is generally the total of all remuneration to an employee except certain payments excluded by the FLSA divided by all hours worked.

An employer who forgets to count compensable travel time when calculating an employees regular rate of pay runs the risk of paying employees below the applicable minimum wage or failing to pay overtime.  Consider an example based on the Opinion Letter where a home health aide worked 25 hours with clients and spent 20 hours traveling between clients.

The home health agency only pays $10.00 per hour for time spent with a client, so the aide would be paid $250 for that week.  Dividing all remuneration ($250) by all hours worked (45 hours: 25 hours with clients plus 20 hours of travel) yields a regular rate” of $5.56 per hour. If the employer agency forgot to include travel time, it would only have paid health aides at a regular rate of $5.56 per hour, which is well below the required federal minimum wage.

The DOL approved of the home health agency’s compensation plan in the Opinion Letter only because the employer represented that it included travel time in calculating the regular rate and would make up any shortfall in the minimum wage owed. If the employer neglected to count travel time, they would also have likely failed to pay required overtime on the 5 hours of overtime worked during the workweek.

Strategies for Dealing with Travel Time

Employers seeking to avoid FLSA violations arising from travel time should first make sure they understand what travel must be counted as hours worked and ensure that their payroll practices include such time when necessary. Armed with the knowledge of what is and what is not compensable, the employer can then structure non-exempt employee work and travel accordingly. Because of the uncertainties attending non-exempt travel time, many employers simply do not use non-exempt employees for work or projects that require travel.

But the needs of many businesses often require non-exempt employees to travel as part of their jobs and, in many industries, non-exempt employee travel is unavoidable.  In these situations, a more common strategy for dealing with travel time is to pay employees for travel at a different, lower rate, than it pays for other work.  The FLSA does not require that all work be compensated at the same hourly rate; to the contrary, the FLSAs regulations expressly contemplate that employees may be paid at different hourly rates for different kinds of work.

Thus, in the situation presented by the Opinion Letter, the employer agency could have paid aides travel at minimum wage – $7.25 per hour (or the applicable State minimum wage) for time spent traveling.  Although this will require the employer to properly calculate a blended rate for overtime hours worked during the week, it minimizes the costs of travel time while ensuring compliance with the FLSAs requirements.

The Opinion Letter is frustratingly ambiguous on whether the home health agency employer paid anything for travel time.  It appears that the employer paid nothing for travel time and instead only paid aides for time spent with clients.  The employer agency then apparently paid the employee any difference between their regular rate and the required minimum wage.  Although the DOL approved of this unusual approach for purposes of complying with the FLSA’s minimum wage requirements, employers should exercise caution before employing a similar strategy for several reasons.

First, the administrative burden of such a strategy is significant.  During each workweek, the employer would need to determine what each non-exempt employee’s regular rate is and then calculate and add to their pay any difference between the regular rate and the applicable minimum wage.  If the employer fails to perform these calculations correctly, it could result in an FLSA minimum wage violation.

Second, this strategy may not be permitted under the laws of some States or localities.  The FLSA permits what is known as “pay averaging” a practice where all pay is divided by all hours worked.  So long as the average pay for all hours worked is above the federal minimum wage, the employer has met the minimum wage obligation of the FLSA.  But “pay averaging” is not permitted in some states, notably California.

In those states, every hour of working time must be paid at no less than minimum wage.  Paying nothing for travel time might well be a violation of the State’s minimum wage law, even though it is acceptable under the FLSA.  Employers who have operations in such States should tread carefully before adopting such a strategy.

Finally, the practical impact of paying nothing for travel should be evaluated.  Employees who have to travel frequently may resent not being paid for the significant time they spend traveling.  Refusing to pay for travel time may also make assignments requiring significant travel undesirable, and cause conflicts about who is tasked with such assignments.  Employees who travel frequently without pay may also feel they are being treated less favorably than employees whose assignments do not include regular travel.

If such an employee is a member of a protected group, they may claim their frequent uncompensated travel is a form of discrimination under federal or state laws.  Even if they do not pursue a claim of discrimination, such employees might quit to work for a competitor in the same field who pays for travel time, or they might advocate for union representation to secure pay for such time.

The DOL’s opinion letter is a good reminder for employers who have to regularly deal with non-exempt employee travel time.  Employers seeking to understand and perhaps streamline their compensation plans for traveling employees should do so in consultation with experienced wage and hour counsel who can ensure that their efforts do not create more problems than they solve.

The St. Louis employment attorneys at McMahon Berger have been representing employers across the country in wage and hour matters for over sixty years and are available to discuss these issues and others. As always, the foregoing is for informational purposes only and does not constitute legal advice regarding any particular situation as every situation must be evaluated on its own facts. The choice of a lawyer is an important decision and should not be based solely on advertisements.

Rex Fennessey

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Search blog, home care 101: travel miles, travel time, errand miles, and how to calculate them.

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Travel Miles

  • Caregivers aren’t paid from their home to their first visit of the day or from their last visit of the day back to their home. This is generally considered to be their “commute” and not reimbursable
  • Travel “between” visits is generally reimbursed to the caregiver. Some agencies pay the caregiver for their travel time. Others pay for their travel miles, and some pay for both travel time and travel miles.
  • In most cases travel miles aren’t billable
  • Many agencies don’t pay for travel between visit if there is a large amount of elapsed time between the visits (in many cases an hour or more). This is considered by those agencies to be a “second commute.” A typical case would be a caregiver who starts the day with a client (e.g., services them from 7:00 AM to 10:00 AM) and then goes back at the end of the clients day (e.g., from 4:30 PM to 6:00 PM).

Errand Miles

Check with the labor council in your area to make sure that you are compliant, working with your software vendor for travel charging and reimbursement.

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Care workers: your rights

UNISON is the UK’s largest union, and we’re the union for care workers.

Sleep-ins, impossible rotas, zero hours contracts, unpaid travel time, just fifteen minutes to care. When you’ve got a problem, we’re right there to help you.

So, what are your rights, and what can you do?

  • Check your rights now – See our FAQs below
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There are around half a million home care workers in the UK like you, many are facing issues at work.

Latest on sleep-ins for care workers

What has happened at the Supreme Court? 

Who this affected and where? 

National Minimum Wage Regulations are applicable across England, Scotland, Wales and Northern Ireland.  The ruling applies across the UK for all staff doing sleep-in shifts in the care sector, and potentially similar sleep-in shifts in other sectors.

What is UNISON’s position? 

Our position remains unchanged – that workers should be paid National Minimum Wage when they have to sleep at work. This ruling is yet another reminder of how care work is under-valued and underpaid.  The need for reform and proper funding of the care sector has never been more urgent and UNISON will not stop campaigning to win you fair pay.

How can I get advice and support from UNISON? 

If you are a UNISON member and wish to speak to someone, you should contact your branch .  Care members can also contact UNISON at  [email protected] .

How can I get involved in campaigning on this issue? 

Please sign the petition and send a clear signal to the UK government that the fight for fair pay is not going away.

Read more in our Sleep-ins Q&A

Need help at work?  Join UNISON now

Coronavirus advice for social care workers.

This page is for care workers, including residential, homecare and community care for both adults and children. It provides advice in relation to COVID-19. Spotting issues during the crisis: your help needed If you become aware of a workplace problem in a social care setting, related to the coronavirus outbreak, email us with a short […]

Sleep-ins judgment: Q&A

Today the Supreme Court has announced their ruling on a UNISON-backed case taken on behalf of a care worker member against her employer, Mencap.

The Ethical Care Charter

The details of the Ethical Care Charter and how to sign up to it.

  • Councils that have adopted the Ethical Care Charter

Am I entitled to paid travel time?

Yes. All homecare workers are entitled to be paid at least the national minimum wage or national living wage for the work that they do. This includes care workers on zero hours contracts.

This means that time spent caring for clients, travelling to appointments and waiting to start the appointment should be included in the pay calculation.

At the very least the work done must average out as at least the national minimum wage or national living wage.

If it does not, then the pay is unlawful you can make a claim to the Employment Tribunal or raise a complaint with HM Revenue & Customs via ACAS.

If you think that you are not receiving the correct pay you can contact UNISON – 0800 0857 857

Tens of thousands of homecare workers are not being paid for their travel time. Homecare workers spends their days making visits to people who need care; they are constantly on the move. Government guidance is clear – you should be paid for this.

What is the minimum and national living wage?

If you are a worker aged 25 and over, you are legally entitled to at least the National Living Wage.

It is illegal for your employer to pay you below the National Living Wage, so check your pay and make sure it is correct.

If you are a worker aged under 25, or an apprentice, you are legally entitled to at least the National Minimum Wage.

Since April 2020, the hourly national minimum wage rates are:

  • £8.72 for workers aged 25 and above (The National Living Wage)
  • £8.20 for workers aged 21-24;
  • £6.55 for workers aged 18-20;
  • £4.35 for workers aged 16-17;
  • £4.15 for apprentices under 19, or in the first year of their apprenticeship.

It doesn’t matter how small an employer is, they still have to pay at least the national living wage or minimum wage (depending on your age).

You should also be paid the national living wage for your travel time between clients, or between a client and the office.

If you are not sure if you are being paid correctly, talk to a union rep. Call us on 0800 0857 857 for contact details

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Working tax credit supports those on low incomes in work and you don’t need children to get it. Check what you might be entitled to:

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Did you know that following an agreement between UNISON and the Inland Revenue, you may be able to claim tax relief for cleaning your uniform?

You can get tax relief for the cost of laundering your uniform, but only where you have to meet the costs out of your own pocket.

You cannot claim if your employer takes care of the cleaning or provides cleaning tokens or free cleaning facilities for you to use.

Nor can you claim uniform laundry costs if you do not have to wear a uniform to do your job.

There is no tax relief for the costs of cleaning ordinary clothes.

Claim online at gov.uk

Do I have a legal right to join a union?

All workers and employees have a legal right to join a trade union if they wish to do so.  It is unlawful for an employer to discipline or sack a person because they talk to or join a trade union.  Being a member of a trade union gives workers greater protection and access to a wide range of services and benefits.

Join UNISON – call us on 0800 0857 857

I’m on a zero hours contract, can I join a union?

Yes. A number of UNISON members are on zero hours contracts and have been supported by their union to raise issues with their employer.  You also have access to a wide range of services and benefits as a result of being in the union.

UNISON is working to help care workers on zero hours contracts: Guardian article

What should I be paid for sleeping-in?

Check the latest update on sleep-ins in the box above on this page.

Does it cost a lot to be in a union?

UNISON has membership rates which are linked to earnings.  The more you earn the more you have to pay.  However, these have been calculated to be affordable for each band – our lowest rate of subscriptions is just £1.30 per month.

Membership of UNISON gives access to a wide range of services. For more information or to join today.

Am I entitled to a contract?

Employees are legally entitled to a contract – a written statement of the main terms and conditions of employment – within two calendar months of starting work.

Your contract should include details of things like  pay ,  holidays and  working hours .

What are my rights as an agency worker?

Agency workers have the same rights as other employees with respect to basic employment and working conditions, if and when they complete a qualifying period of 12 weeks in a particular job.

If you are concerned about your situation at work, please talk to us. Call on  0800 0857 857

What are my rights to holidays, maternity pay and other leave?

There are laws setting out the minimum amount of leave you can take – you cannot be worse off under your employer’s own terms.

Taking one type of leave should not generally affect your other leave allowances. Check our guide on the different kinds of leave

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Workers over 18 are entitled to 3 types of break – rest breaks at work, daily rest and weekly rest.

Rest breaks at work You have the right to a 20 minute rest break during your working day, if you work more than 6 hours a day. This could be a tea or lunch break.

The break doesn’t have to be paid – it depends on your employment contract.

Daily rest You have the right to 11 hours rest between working days, eg if you finish work at 8pm, you shouldn’t be asked to start work again until 7am the next day.

Weekly rest Workers have the right to either:

  • an uninterrupted 24 hours without any work each week
  • an uninterrupted 48 hours without any work each fortnight

If you think that you are not getting rest breaks you need you can contact UNISON – 0800 0857 857

What are the rules on staffing in care homes?

CQC: Guidance on staffing levels in care homes

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Understanding care workers’ pay and travel time

Care workers face many obstacles when trying to get a fair deal on pay. Trade union organisation is rare , employers are hammering down on costs, the government shows little appetite to regulate the (largely privatised) social care industry – and the courts are out of reach to many .

Click here to work out your pay using our Home Care Pay Calculator

When ‘Mark’ worked providing support, care and assistance to elderly people in their homes, his employment contract said he would be paid £7.50 an hour. He’s since left the company, fed up of feeling exploited by a firm trying to cash in on this vital, hard, stressful work.

One of the reasons he felt hard done by was that he wasn’t even being paid the rate the company had promised. In practice he’s pretty sure he was getting less than the minimum wage, then £6.70 an hour.

The thorny question for Mark and thousands of other care workers is whether they are being paid for the time it takes them to travel between care appointments. This should be standard practice: an office worker doesn’t get paid going from home to the office, but would expect to be paid for the time spent travelling from the office to meet a client in the middle of the day.

Mark’s payslips told him how much he was paid for the hours he spent with ‘clients’. But they didn’t show how much time he spent travelling between appointments. Or whether he was paid for that. So he knew what he was getting in total every two weeks but not how many hours he was being paid for. And as a result he didn’t know his hourly rate. He told Corporate Watch:

“I don’t think it is fair that our payslips don’t say what we are actually being paid for. If I worked at Tesco I would be paid an hourly rate. That doesn’t happen here.”

Around 220,000 care workers are reckoned to be paid below the legal minimum wage . Investigations of care providers between 2011 and 2015 by the regulator HMRC found that 41% were guilty of not paying the minimum wage . The government has done precious little about this. The Unison trade union says just 36, mainly smaller, providers have been “named and shamed” as part of a much-trumpeted crackdown.

However, many of the bigger care companies – including Allied Healthcare , Care UK and MiHomecare – have faced negative publicity for under-paying their workers. Increasingly care workers are taking legal action themselves. Sevacare, the fourth biggest care company, was taken to court last month for paying workers less than the minimum wage, in part due to not paying travel time.

In response to increased public scrutiny, some companies have started paying for some travel time, but not as much as they should. MiHomecare, for example, has increased its pay rates, stung by negative publicity and being taken to court by one of its workers . The higher rates mean it is no longer paying workers below the minimum wage – but it is still not directly paying its workers for their travel time. They are being paid for their care hours at a rate that, when the travel time is included, keeps them just above the minimum wage.

For example, if someone on £9 an hour spends 35 hours caring for people in their homes, they will be paid £315. But add the ten hours she spent travelling between calls that week and that £315 is actually paying for 43 hours of work, which means she is being paid an effective rate of just £7.32 an hour.

This lets the company off the hook with HMRC – which only gets involved when minimum wage legislation has been breached – but renders meaningless the rate care workers are told they will get when they join the company.

Another care worker told Corporate Watch he had contacted HMRC for assistance but had been told the regulator only intervened in cases where minimum wage law had been breached.

Earlier this year we met care workers who had chosen to join MiHomecare because of the higher rate offered compared to its competitors. However, they left when they realised that their chosen company was, unlike its rival, not paying travel time as a separate item but simply ensuring their pay rates were above minimum wage when travel time was added on to the hours they spent with clients.

If workers can find a solicitor they may be entitled take their employer to court for not paying the contractual rate. But employment tribunal fees and a lack of solicitors willing to take such a cases on make this option beyond the reach of many.

To further confuse things, what constitutes travel time means different things to different people. Some companies only count time spent on the road when calculating travel hours.

But this was not the interpretation used in the judgement from the 2013 court case that created the precedent for travel time claims, known as ‘ Whittlestone vs BJP’ , in which a care worker successfully took action against her employer for not paying her for travel time, among other things.

Judge Langstaff, then head of the Employment Appeals Tribunal, said time between visits on a care worker’s rota should be paid, unless “the Claimant might have had so long between the end of one assignment and the next as to return home”.

As such, when a worker has a short gap between appointments, they should be paid for the full gap, not just the actual amount of time spent travelling. For example, if there is a 15 minute gap between appointments but it only takes five minutes to travel between them, care workers should still be paid for the full 15 minutes as they do not have time to go home or do anything else ‘for themselves’ in between.

This could have a significant effect on the pay of workers, especially those in urban areas where actual travel distances are short. If you have a ten minute gap between appointments on the same street, there’s not much you can do inbetween other than wait. But if you have a few calls like this a day, and those nine minutes spent hanging around are never included, the money lost will soon add up.

Having to constantly second guess your employer and calculate your actual pay rate is time-consuming – and exactly what care workers don’t need after a physically and emotionally tiring day. It’s just one example of how home care companies, with the tacit support of central government and the local councils who commission these firms , have taken advantage of lax regulation to keep their staff costs down.

COMMENTS

  1. Travel Time

    However, travel from job site to job site during the workday, such as travel between several clients during the workday, is compensable hours worked. The third-party employer is responsible for ensuring that travel time from job site to job site is paid.

  2. Travel Time

    Time spent traveling during normal work hours is considered compensable work time. Time spent in home-to-work travel by an employee in an employer-provided vehicle, or in activities performed by an employee that are incidental to the use of the vehicle for commuting, generally is not "hours worked" and, therefore, does not have to be paid. This provision applies only if the travel is within ...

  3. Everything You Should Know About Travel Time To Work

    Time spent traveling on a business trip within the hours they regularly work (9 a.m. to 5 p.m., for example) is eligible for travel pay. This includes travel time on weekends. For example, if an employee normally works from 8 a.m. to 4 p.m. and leaves work at 2 p.m. to catch a flight for an overnight business trip, they should be paid for the ...

  4. Why and When to Pay Employees For Travel Time

    Generally, employees should be compensated for all time spent traveling during regular business hours. This is also true for non-working days, as long as they are still on the business trip. However, if an employee is a passenger on a plane, train, or automobile, and the travel is during non-work hours, and the employee is not required to and ...

  5. DOL Explains When Employees Must Be Paid for Travel Time

    Travel time from home to office varies from 15 minutes to an hour, depending on where the employee lives. (2) Employee travel time from home directly to a customer location; and. (3) Employee travel time by plane on a Sunday from home to an out-of-state destination for a company training that begins at 8:00 a.m. on Monday.

  6. A Guide to Travel Time Pay Policies

    Paid travel time for non-exempt employees can include the following activities: Driving to a different job site. Conducting work activities on a flight, bus, or train ... However, work-related travel time, such as traveling to client meetings or off-site work locations, is usually considered compensable and should be paid. Any time an employee ...

  7. When Do Employers Have to Pay Employees for Travel Time?

    This gives them an extra $90 (which is 8 hours multiplied by $11.25 per hour). Add these together, and their total straight-time pay for the week is $690. Now, to figure out their average rate for the week (including travel time and regular office time), you need to divide this total pay by their total hours worked.

  8. Rules of the Road: When Does Travel Time Become Paid Time?

    Stan's pay will need to include: Sunday's travel time during standard working hours, 8:00 a.m. to 5:00 p.m. Time spent at the conference on Monday, Tuesday, and Wednesday. Time spent at the networking event on Monday evening because it was not voluntary and was job-related. All travel time on Wednesday during standard working hours ...

  9. When Must I Pay Employees for Travel Time?

    When Must I Pay Employees for Travel Time? Travel Time vs. Commuting Time. By Jean Murray. Updated on May 26, 2020. Photo: Image by Jo Zixuan Zhou © The Balance 2020. Employee travel must be paid by employers, but there are exceptions for commuting, incidental travel, and travel away from home.

  10. Rules of the road: Travel time pay for hourly employees

    You don't have to pay employees for time spent at training programs, lectures or similar activities as long as they meet the following four criteria: (1) The event is outside normal hours. (2 ...

  11. A guide to paid travel time to work

    The nature of paid travel time differs between countries, but any time spent commuting from one work location to another is commonly regarded as paid travel time for employees. ... This rule also applies to employees who go on business trips within or outside their local area to meet with clients. Working time regulations require most employees ...

  12. Getting Paid for Travel Time

    Employees are entitled to pay for travel time that's part of the day-to-day job. For example, if employees are required to go out on service calls, the time spent traveling to and from customer locations must be paid. Even an employee whose job doesn't ordinarily involve travel may be entitled to pay for travel time if the employee is required ...

  13. Are rest breaks, meal breaks, and travel time considered work time?

    Certain travel time, however, must be paid. For example, if a worker travels between the homes of more than one client during the day on behalf of the same home care agency or drives the person he or she assists to medical appointments, on errands, etc., then that travel is considered all in a day's work and must be paid.

  14. Do We Have to Pay for That? Part 2—Travel and Commute Time (in a Post

    If an employee is required to travel for a one-day assignment in another city, all travel time to and from the destination—less the time the employee would have spent commuting to their regular work site—is counted as time worked and must be paid under the "special one-day assignment" rule in 29 C.F.R. § 785.37.

  15. Paid Travel Time to Work: Guide with Types and Examples

    If the business sends you on a one-day business trip, the company typically pays for the time it takes you to travel to and from the destination. Depending on the company, they may pay you a portion of these travel fees only. You can calculate this by subtracting your daily commute time from time travelled on your business trip.

  16. Understanding and Managing Travel Time to Work Law

    When Paid: Travel time classified as working time is generally compensated. This is particularly relevant for mobile workers or those engaged in business travel. For instance, if a home care provider travels directly to a client site or a sales representative moves between appointments, this travel time is typically counted as working hours and ...

  17. 1 July 2022 changes to Social, Community, Home care & Disability

    The time a part-time or casual employee spends travelling between clients during the relevant minimum payment period is counted as time worked and paid. The travel provisions of the SCHADS Award still apply. Read more about travel entitlements on our Uniforms, vehicle and travel entitlements page. Simply select 'Social, community, disability ...

  18. If someone travels for their job

    If an employer wants to count this travel time as working time, they can. Travel time while at work will usually count as working time, for example when travelling: from one client to the next; from an office to a meeting elsewhere; Find out about the maximum hours an employee can work in a week. If the employee has no fixed place of work

  19. Do You Have to Pay an Employee for Travel Time?

    Dividing all remuneration ($250) by all hours worked (45 hours: 25 hours with clients plus 20 hours of travel) yields a regular rate of $5.56 per hour. If the employer agency forgot to include travel time, it would only have paid health aides at a regular rate of $5.56 per hour, which is well below the required federal minimum wage.

  20. Home Care 101: Travel Miles, Travel Time, Errand Miles, and ...

    Travel Miles. Caregivers aren't paid from their home to their first visit of the day or from their last visit of the day back to their home. This is generally considered to be their "commute" and not reimbursable. Travel "between" visits is generally reimbursed to the caregiver. Some agencies pay the caregiver for their travel time.

  21. Care workers: your rights

    You should also be paid the national living wage for your travel time between clients, or between a client and the office. If you are not sure if you are being paid correctly, talk to a union rep. Call us on 0800 0857 857 for contact details. Gov.uk - Your pay, tax and the National Minimum Wage

  22. Understanding care workers' pay and travel time

    They are being paid for their care hours at a rate that, when the travel time is included, keeps them just above the minimum wage. For example, if someone on £9 an hour spends 35 hours caring for people in their homes, they will be paid £315. But add the ten hours she spent travelling between calls that week and that £315 is actually paying ...

  23. Should home care workers be paid for travel time?

    Jacki Attridge, Head of Home & Community Care Operations Uniting NSW/ACT, told HelloCare Uniting pays home care workers for their travel time. "There is no difference for a worker in terms of how they are paid, be it client facing or in between clients. It's all paid the same. We also reimburse for any kilometres that a support worker ...