Written by Kristen O’Connell, CPP

Introduction

When your business sends hourly or other non‑exempt employees to client meetings, remote sites, or training, questions about travel-time pay inevitably arise. Federal and state regulations require employers to compensate certain travel hours, but the rules are nuanced. Misunderstanding them can expose companies to wage‑and‑hour liability, back pay, and penalties.

Who the rule covers

Travel‑time pay requirements apply to non‑exempt employees (workers entitled to minimum wage and overtime) regardless of whether they are paid hourly or on a salary. Exempt employees (executives, administrative staff, and professionals) are usually paid a fixed salary and are not entitled to additional travel‑time pay. Keeping this distinction in mind will help you apply the rules correctly.

This guide explains when travel time becomes compensable, outlines industry‑specific considerations, and offers best practices to help you stay compliant and support your workforce.

Learn more about PA Minimum Salary Required for Exempt Employees.

When travel time is compensable

The FLSA and the Portal‑to‑Portal Act draw a line between ordinary commutes and work‑related travel. Understanding those distinctions is critical when paying travel time for hourly employees. Here are the scenarios that require wages:

• Travel between job sites during the workday: Once an employee arrives at their regular workplace, any travel between job sites or to off‑site meetings is part of the principal work activity and must be paid. For example, a technician who drives from your office to a client’s location should record that time as hours worked. Similarly, if employees need to pick up materials at your facility before heading to a job, Pennsylvania law treats that time as compensable because they reported to the employer’s premises before traveling.

• One‑day assignments and day trips: When an employee with a fixed work location or home base is assigned to a different city or site for a single day and returns the same day, all travel time is compensable, except for the portion equal to their normal home‑to‑work commute and bona fide meal periods during which the employee is fully relieved from duty. This often affects sales teams and field service staff. Under Department of Labor travel time pay guidance, employers may subtract the employee’s usual commute from the paid travel time but must pay for the remainder.

• Overnight travel across schedules: Travel that keeps an employee away overnight is compensable when it occurs during the employee’s normal working hours, even if the travel falls on nonworking days. However, travel outside regular working hours is generally not compensable when the employee is a passenger, unless the employee performs work while traveling. For example, if your standard working hours are 8 a.m. to 4 p.m., travel between those times counts as work whether it happens on a weekday or a weekend. Travel outside the regular schedule is generally non‑compensable unless the employee performs work such as reviewing reports or responding to emails while traveling. This is why documenting regular schedules and any work performed on the road is essential for compliance with the FLSA travel time pay requirements.

• Emergency calls and special circumstances: In some cases, travel time may be compensable when an employee is called back to work outside normal hours, particularly if the travel involves a special assignment, unusual circumstances, or duties beyond ordinary commuting. This is a fact-specific area where employers should proceed carefully. Travel time may become compensable when an employee transports coworkers, equipment, or materials as part of their job duties, particularly when those responsibilities exceed ordinary commuting and are part of the employee’s required duties.

• Time spent working while traveling: Federal and state laws require hourly, non-exempt employees to be paid for all time they work. That includes payment for work performed during travel time that would otherwise not be compensable. For example, if a non-exempt employee takes a phone call from a customer during their morning commute to work, that phone call must be considered (and paid) as work time. This is true even though time spent commuting to and from work before or after the workday is not generally compensable. While the law requires employees to be paid for all time worked, employers can control unexpected wage costs during otherwise unpaid travel time by requiring employees to obtain management approval before working outside of their normal schedule. When necessary, employers may discipline workers who do not follow this rule.

• Pennsylvania and industry‑specific requirements: States can impose more protective rules than federal law. Pennsylvania's wage regulations are often interpreted more broadly than federal law. When employees are required to report to the employer's premises before traveling to a worksite, the subsequent travel time is generally considered compensable working time. Travel between construction sites during the workday is compensable working time. Travel from home directly to the first site is generally ordinary commuting, but travel from a required meeting point, shop, yard, or tool-pickup location to the worksite is compensable working time. Learn more about Pennsylvania’s travel time pay requirements.

• Union contracts and prevailing wage laws can further affect travel pay on public works projects. Employers should review collective bargaining agreements for travel clauses and be mindful of any industry‑specific requirements.

“Whether a non-exempt employee is entitled to pay for time spent traveling is a highly fact-specific inquiry, and the issue can create compliance blind spots for employers. Factors such as when an employee is traveling, their starting point and destination, and the reason for the trip are all relevant factors to be considered. Employers should ensure that they have written policies addressing employee travel and train managerial staff to recognize situations where work-related trips are or may be compensable. If uncertainty arises, employers should contact counsel to verify that their approach is compliant with all applicable federal, state, and local laws,” explained Micah Saul, Labor & Employment Attorney at McNees Wallace & Nurick, LLC.

Compliance strategies for employers

Properly administering travel time pay involves more than simply cutting a check. Here are the steps to maintain compliance:

• Establish clear policies: Write a travel‑pay policy that explains when travel begins and ends, how to handle one‑day assignments versus overnight trips, and how normal commute time is deducted. The policy should explain that all non-exempt employees must accurately record and report all time worked, even when that work time occurs during otherwise non-compensable travel. Ensure that non-exempt employees seek management approval before working outside of scheduled work hours, including during any unpaid travel time, and include examples for hourly and salaried staff to reference.

• Track travel separately: Have employees record travel hours distinct from productive hours to simplify overtime calculations. Time‑tracking apps and GPS logs can help document routes and durations.

• Reimbursable expenses: In addition to wages, consider reimbursing mileage using the current IRS rate or another reasonable method that complies with applicable law, plus tolls, parking, and lodging. Mileage reimbursements are not wages but should never reduce pay below minimum wage.

• Train managers: Supervisors should understand federal guidance and state rules to avoid instructing employees to work off the clock or travel unpaid. Ensure that dispatchers and schedulers know that assigning a job at a remote or off-site location can trigger paid travel obligations.

• Stay current: Rules evolve. In recent years, court cases like Walters v. Professional Labor Group clarified that travel during normal working hours counts toward overtime, even on non‑working days. Watch for updates from the U.S. Department of Labor and state agencies, and consult your advisors for multi‑state operations.

FAQs about travel time pay

Do companies have to pay for travel time?

Yes – companies generally must pay non‑exempt employees for time spent traveling during the workday, traveling to one‑day assignments in another city, or traveling overnight during their normal working hours. Ordinary commuting from home to the first job site and back home at day’s end remains non‑compensable.

How is travel time pay for construction workers handled?

Construction employees often travel between multiple sites each day. Travel from a central shop or yard to the first site is usually paid time if employees are required to report there first. Travel between job sites during the day is always compensable. Travel directly from home to the first site may be unpaid unless a union agreement or state law says otherwise.

Does the Department of Labor require travel pay for hourly employees?

The U.S. Department of Labor interprets the FLSA and the Portal‑to‑Portal Act to require travel pay in specific circumstances. Its Fact Sheet No. 22 explains that travel from job site to job site, one‑day assignments in another city and travel during normal working hours on overnight trips are hours worked. Employers should review the fact sheet and applicable state laws to ensure compliance.

How does travel time pay work under the FLSA?

Under the FLSA, travel time is work time when it is part of an employee’s principal activity, meaning the worker is engaged to be ready for work. Travel that keeps an employee away overnight is paid when it overlaps with normal working hours, even if the travel occurs on weekends or holidays. Commuting and incidental travel outside regular hours remain unpaid unless work is performed while traveling.

Conclusion and next steps

The nuances of travel time pay for hourly employees can be daunting, but ignoring them risks costly wage‑and‑hour violations. By distinguishing between ordinary commutes and compensable travel, documenting schedules and travel hours, and reimbursing expenses, employers can protect both their workers and their bottom line. Multi‑state companies must adapt policies to each jurisdiction and stay alert to new court decisions and regulations.

For personalized guidance on travel-time pay for hourly employees, Trout CPA’s Payroll Administration team can help review your payroll processes, support compliance, and improve accuracy and efficiency. Explore our Payroll Administration Services to help keep your travel pay practices compliant and optimized for your business.