How do you compensate employees for travel time?

Published by Charlie Davidson on

How do you compensate employees for travel time?

Your employer can even pay you a flat rate for your travel time hours so long as that rate is equal to at least the minimum wage for all time spent driving. If your employer chooses to pay you a different rate for your travel time, they must: Provide you notice prior to the travel time.

Are employees paid for travel time?

According to the DLSE, California law requires employers to pay travel time if they require an employee, on a short-time basis, to travel anything more than a minor distance to report to a worksite other than the employee’s usual workplace.

What is travel time compensation?

The time an employee spends at an airport before their flight leaves (2 hours is a reasonable amount of time) and during any layovers is considered travel time and is compensated if it crosses their normal work hours, including weekends or other days off.

Is travel time considered work time?

Is commuting time paid? Normal commuting time is not hours of work and thus not paid. However, if a worker is ordered to perform substantial work during traveling/commuting, this will be considered his work and duly paid.

Should you get paid more for traveling?

Although you do not usually have to pay an employee for time spent commuting, you must pay for travel time if that time is part of the job. For example, if your employees are required to go out on service calls, the time spent traveling to and from the customers must be paid.

Do independent contractors get paid for travel time?

A contractor does not have to be paid for ordinary daily travel from work-to-home and vice versa. Contractors who normally work at a fixed location but are given a one-day assignment in another town must be paid for travel time (excluding normal home-to-work time).

Do employers have to pay for travel expenses?

As a general matter, no. Unfortunately, employers are not required to reimburse employees for expenses incurred in connection with their work, including travel expenses. If a contract, such as an employment contract, calls for reimbursement, that contract must be honored.

What does 70 percent travel mean?

So what does 70 percent travel mean? It means that the employer expects you to be traveling or in cities other than your home city for 70 percent of your working days. So you would expect to spend seven days traveling or away from home for every three days in your home town/office.

Do jobs that travel pay more?

That’s especially true if you’ve been offered a job that requires traveling, because the expenses of traveling could cut into your salary. Most companies reimburse the majority of traveling costs for employees who must travel frequently, which would reduce the salary you should ask for.

How much should I charge for traveling?

According to the IRS site, the allowance for business travel is $0.51/mile. If the job is 100 miles away, they will charge $51 of travel. Given 100 miles could be a 2-hour drive, it’s obviously more beneficial to charge hourly.

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