As an employer, it is important to understand the rules and regulations surrounding travel pay for hourly employees. In this guide, we will cover everything you need to know about travel pay, including when it is required, how to calculate it, and what expenses are covered.
What is Travel Pay?
Travel pay is compensation given to employees for time spent traveling for work-related purposes. This includes time spent traveling between job sites, attending conferences or training sessions, and any other travel required by the job.
It is important to note that travel pay is only required for non-exempt, hourly employees. Exempt, salaried employees are not eligible for travel pay.
When is Travel Pay Required?
Travel pay is required any time an hourly employee is traveling for work-related purposes outside of their normal working hours. This includes travel on weekends or holidays, as well as travel outside of the employee’s normal work schedule.
However, travel pay is not required for time spent commuting to and from work. This means that employees are not entitled to travel pay for their daily commute, even if they are required to travel a long distance.
How is Travel Pay Calculated?
The calculation for travel pay depends on several factors, including the employee’s regular rate of pay, the amount of time spent traveling, and the type of travel involved (i.e. driving, flying, etc.).
One common method for calculating travel pay is to pay employees their regular hourly rate for all time spent traveling during their normal working hours, and one-half their regular hourly rate for all time spent traveling outside of their normal working hours.
What Expenses are Covered?
In addition to compensating employees for their travel time, employers are also responsible for reimbursing employees for any reasonable and necessary expenses incurred during their travel. This includes expenses such as meals, lodging, and transportation.
However, it is important to note that employers are not required to reimburse employees for expenses that are deemed unnecessary or excessive.
What are the Consequences of Failing to Provide Travel Pay?
Employers who fail to provide travel pay to eligible employees may be subject to legal action, including lawsuits and fines. In addition, failing to provide travel pay can also result in decreased morale and productivity among employees.
FAQs
Question | Answer |
---|---|
What types of travel are eligible for travel pay? | Any travel required for work-related purposes, outside of the employee’s normal commuting time, is eligible for travel pay. |
What expenses are covered under travel pay? | Reasonable and necessary expenses, such as meals, lodging, and transportation, are covered under travel pay. |
Are exempt employees eligible for travel pay? | No, travel pay is only required for non-exempt, hourly employees. |
What are the consequences of failing to provide travel pay? | Employers who fail to provide travel pay may face legal action and decreased employee morale and productivity. |
Conclusion
Travel pay for hourly employees is an important aspect of fair compensation in the workplace. Employers must understand the rules and regulations surrounding travel pay in order to avoid legal action and maintain a productive and happy workforce.