If our employees regularly commute to different work locations each day, do we have to pay for their commute to the first location?

In the absence of a collective bargaining agreement addressing travel pay, or when employment is subject to the public works laws, travel time to a first location usually is not considered to be hours worked. However, this time is compensable in some situations.

For instance, in a 2003 opinion letter, the Division of Labor Standards Enforcement recognized that employees in occupations such as construction expect to report to varied worksites. As long as the worksite is within a reasonable distance, travel to the first location is not considered hours worked.

The term “reasonable distance” has not been definitively established. The division, however, has stated that these factors should be considered:

  • The nature of the employment;
  • The type of industry and the industry standard; and
  • The reasonable agreement between the parties.

For varied travel that extends beyond a reasonable distance, the employee should be compensated for any time that exceeds their usual or normal commute.

Keep in mind that agency opinion letters offer guidance but do not have the force of law. A court is not bound by them and may come to a different conclusion on the issue.

In a circumstance where the employer requires the employee to deliver tools, materials and supplies to the job location, the commute would be compensable. However, if employees are simply carrying tools and equipment with them while commuting, the time does not become compensable.

Another unique situation is where nonexempt employees are specifically assigned to work from home. When these employees travel to varied sites, they are entitled to compensation for the first and subsequent commutes.

In each situation, review the specific facts of the travel requirements and consult with legal counsel if it’s unclear whether the commute to the first location is within a reasonable distance or exceeds their usual or ordinary commute.

Read about Commute Time in the HR Library.