An important point to note from this case is this: If the employee can show that the reimbursement amount that the employer has paid is less than the actual expenses that the employee has necessarily incurred for work-required automobile use (as calculated using the actual expense method), the employer must make up the difference. (Gatusso v. Harte-Hanks Shoppers, Inc., supra, 42 Cal. For these reasons, employers should develop comprehensive strategies for responsible, efficient travel. Because section 2802 requires the employer to fully reimburse the employee for all expenses actually and necessarily incurred, both parties here agree that if an employer uses the mileage reimbursement method, the employee must be permitted to challenge the resulting reimbursement payment. (Id. If you are an employee in California and you work more than eight hours in a day or more than 40 hours in a week, you are entitled to overtime pay. of Industrial Relations (December 2002) Opinion Letter No.2002.12.11, Hours worked Split Shift at pp. Ultimately, it is up to the employer to decide whether travel time is considered to be work time or not. See above. In 2023, the standard mileage reimbursement for business-related driving is 62.5 cents per mile driven. Facebook to end news access in Canada over incoming law on paying publishers. Then, calculate your regular hourly wage. This could calculate to no compensable time if, for instance, the travel time is less from the employee's home to the distant worksite than the employee's normal commute. If you are a California employee and you are not paid overtime for the time you spend traveling, you may be able to recover that overtime pay. As a reminder, compensation paid for drive time is separate from potential reimbursement obligations an employer may have for mileage and other business expenses when an employee travels for work. Up-to-date information for employers on topics and issues that may affect workplace operations. In some cases, travel time may be considered part of the work day, and in others, it may not. If you do end up working over your normal 40 hours, you are entitled to receive at least 1.5 times your regular rate of pay for each hour worked over 40, per federal employment law. This is because employees are not required to spend any extra time travelling to and from their work location. The following questions and answers are not intended to be comprehensive but to give the reader some ways to think about the issues and some citations for further research. Additionally, your overtime pay is based on your average hourly wage over the past two weeks. The typical workweek schedule begins each Sunday and ends the following Saturday, however, this need not be the case. The first thing to consider is whether the travel is required or optional. If the travel time in question is compensable, as discussed above, it is the employers responsibility to keep track of those hours. 4. The Double Drive Time Law (DDT), passed by the California Public Utilities Commission (CPUC), requires California based moving companies to double the amount of time it takes to get from the origin point to the destination point at the agreed upon hourly rate. These statutes grant DHCS the authority to establish its programs and adopt regulations. Example: Martin works at an office in San Bernardino and has to go to a two-day trade show in Philadelphia. Under California labor laws, employees are entitled to overtime pay for all hours worked over eight in a day or forty in a week. temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; Whether or not employees should be compensated for their travel time is a question that has been debated for many years. Employers may need a refresher on commute time for employees. Employees who experience a change in work site location must be compensated for any actual (driving) travel time in excess of the time normally required to report to their regular work site. Amounts recovered pursuant to this section shall be paid to the affected employee.. This generally only occurs when an employee is paid at or near minimum wage. If you have any questions about whether or not travel time is considered to be work time, you should speak to an attorney. Example: Barney has to travel from Los Angeles to San Francisco for a series of company meetings. However, this averaging permitted by federal law violates California law. As a California employer, you may not average wages over any period to determine whether an employee has been paid minimum wage. For example, if you are a nonexempt employee who works a nine-hour day and spends two hours traveling, you would be entitled to two hours of overtime pay. Daryls employer may also have to reimburse Daryl for the morning coffee drive as it was directed by his employer. A. Q. 1011 Camino Del Rio S, Suite 531 Accordingly, [w]hen an employee works a split shift, one (1) hours pay at the minimum wage shall be paid in addition to the minimum wage for that workday. (Wage Order 15 Section 4(C).). Need assistance with a specific HR issue? How far can an employer make an employee travel for work? The split shift rule raises a couple more issues. In general, these cards are billed to the company and the employee does not incur any expenses or losses when using the card. The conclusion in Morillion was that compulsory travel time is compensable as hours worked. (Id. However, Martin may have to pay out of pocket for his extra days meals, hotel, gas, and car rental because his side trip to Gettysburg was not work-related. WebExemption 1: As of 1/03/2023, there have been a total of 1,785 Exemption 1 requests approved, 1,213 denied, and 0 pending. 586-587.). (2015) 60 Cal. SUBSCRIBE HERE! ((b) All awards made by a court or by the Division of Labor Standards Enforcement for reimbursement of necessary expenditures under this section shall carry interest at the same rate as judgments in civil actions. you should pay for the employee's travel time. Under California labor laws, you are entitled to reimbursement for travel expenses or losses that are directly related to your job. Please confirm that you want to proceed with deleting bookmark. This is similar to the concept discussed above, where an employer using an online mapping service for calculating travel time would likely have to compensate his or her employee for the actual travel time as recorded by the employee if there were a discrepancy between the two figures. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { This includes expenses as a direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer.1, Travel expenses for employees depend on the, California labor laws require employers to reimburse employees for all losses and expenditures that are a direct consequence of an employees work duties.2. Employers require at least some employees to travel for business purposes. WebIn its decision, the Board stated: "The offer made to the claimant . Sign up to stay informed. Finally, if you have any questions or concerns about travelling time, dont hesitate to contact your employer or union for clarification. . Your overtime pay would be calculated as follows: (2 hours x your regular hourly wage) = overtime pay. An employer shall not take retaliatory action, including termination, against an employee for citing wage and hour violations or filing an unpaid expense lawsuit. The workweek may begin on any day of the week. Please purchase a SHRM membership before saving bookmarks. CA DLSE Enforcement Policies and Interpretations 46.1.1, Employers are permitted to pay employees a lower wage rate for travel time than they do for time when employees are performing actual job duties. Laws change in a moment. On the other hand, it may be unrealistic to set a $100.00 per night per diem for hotel costs in San Francisco. Employee travel raises complex issues, particularly with respect to non-exempt employees. Realize that this practice of paying your employees less than their regular hourly rate (but still minimum wage) for travel time will have a few other implications. by Jennifer Brown Shaw and Alayna Schroeder | The Daily Recorder | January 29, 2019. We strongly recommend that you consult with legal counsel about your specific situation. Interest shall accrue from the date on which the employee incurred the necessary expenditure or loss.), Labor Code 2802 LC, see endnote 1 above. An employer must count all hours worked no matter where the work is performed. An employer may not violate California labor laws simply because they have a more restrictive company policy.4. $(document).ready(function () { The California wage order at issue in Gutierrez provided that all employer-mandated travel that occurs after the first location where the employees presence is Q. This time is not considered to be work time, and the employee is not entitled to any compensation for it. That said, the level of the employers control over its employees, rather than the mere fact the employer requires the employees activity, is determinative. (Id. Employers have options for limiting travel time and expenses, such as the following: Employers may require non-exempt employees to use available technologies like video conferencing. California labor and employment attorneys. This entry does not give specific legal advice about your specific legal problem. 575-576.). to work as a telephone operator in her home community, involving a travel time of thirty minutes or less was an However, the employee is still entitled to reimbursement for reasonable cash expenses and any travel expenses incurred on a personal credit card. ((d) In addition to recovery of penalties under this section in a court action or proceedings pursuant to Section 98, the commissioner may issue a citation against an employer or other person acting on behalf of the employer who violates reimbursement obligations for an amount determined to be due to an employee under this section. An employer does not need to pay employees reporting or show up pay if: An employer does not need to count hours compensated as show-up time but not actually worked as hours worked when calculating weekly overtime obligations. These factors include the type of travel involved, the distance travelled, and the amount of time spent travelling. Under the California Labor Code, an employer is required to work expense reimbursement reimburse an employee for all necessary expenditures or losses incurred that are directly related to the job. In addition to paying for travel time, under California Labor Code section 2802, employers are responsible for paying employees necessary business expenses, including travel-related expenses. Combining work-related travel with personal travel will depend on the employees expense policy, federal tax law, and California labor law. 569.) In most cases, an employer will reimburse an employee based on the IRS guidelines for standard mileage. required to drive a work vehicle immediately to their home because they are unable to use it for personal purposes. [T]he federal Internal Revenue Service (IRS) has calculated an automobile mileage rate for federal income tax purposes, based on national average expenses for fuel, maintenance, repair, depreciation, and insurance, and this IRS mileage rate is also widely used and accepted by private business employers for calculating reimbursable employee automobile expenses. However, there are exceptions. In many jobs, employees are required to travel to different locations in order to carry out their work duties. A. Generally speaking, travel time is not considered to be part of the work day if the employee is traveling from home to a work-related destination. CA DLSE Enforcement Policies and Interpretations 46.5(a). A meeting, lecture, or training is directly related to an employees job if it is designed to help the employee perform his or her current job duties more effectively as distinguished from preparing the employee for a new job or helping the employee learn a new skill. Employers sometimes focus on federal tax-related rules and impose per diem expense limits set by the Internal Revenue Service. If you are a California employee who travels for work, you may be entitled to overtime pay for the time you spend traveling. If an employee is required to travel to a client or customer site, the travel time is generally considered to be work time. Unfortunately, there is no legal authority confirming that per diems necessarily satisfy the employees obligation to pay expenses under the Labor Code when actual, reasonable expenses exceed the employers allowance. This is a question that comes up often for employees, and there is no definitive answer. In some cases, employees may be required to travel outside of their normal work hours in order to complete their work. WebUnder California law, earned vacation time is considered wages, and vacation time is earned, or vests, as labor is performed. With advanced notice, employers lawfully may pay non-exempt employees for travel time at a lower rate, such as minimum wage. (See. 785.38 ), time spent by an employee in travel as part of his principal activity, such as travel from job site to job site CA DLSE Enforcement Policies and Interpretations 46.6.3. This is because employees are not required to spend any extra time travelling to and from their work location. Exempt employees nevertheless must be reimbursed for travel-related expenses. When hourly employees travel as part of the job, several employment law issues require attention. If one of your questions was not answered above, or if you need clarification on one of these points, please do not hesitate to contact us. "Non-exempt employees are entitled to a 10-minute paid rest period for every 4 hours worked (or major fraction thereof)." Secondly, make sure to keep track of the time you spend travelling, both to and from work, so that you can submit accurate timesheets. WebState of Pride Report Know Your Rights Recent Work Contact the Attorney General Attorney General Bonta is committed to protecting the rights of all people. Representation in business, real estate, construction, home care, trust and probate litigation and general civil litigation. If employees work 24-hour shifts or longer, an employer and employee may agree to deduct up to and not exceeding eight (8) hours of sleep time from the employees hours worked for that shift, so long as the employer provides adequate sleeping facilities and the employees usually receive eight (8) hours of uninterrupted sleep. However, your overtime pay is based on your regular hourly wage. US market indices are shown in real Here's how employers and employees can successfully manage generative AI and other AI-powered systems. *Only one discount is permitted per order. Ultimately, the buck stops with the employer to keep track of not just travel time but all hours worked for all employees, excluding exempt employees. Local travel is travel within the same city or town, while out-of-town travel is travel to a different city or town. No. ), (Note: California differs from federal law in complying with minimum wage requirements. The employee submits that information to the employer, who then multiplies the work-required miles driven by a predetermined amount that approximates the per-mile cost of owning and operating an automobile. If the time off is more than an hour, then only actual driving time between clients might be paid (plus the premium, if applicable). There are a few other exceptions to the rule that travel time is not considered to be work time. This could trigger a split shift premium depending on the total compensation your employee receives during that particular pay period. Travel Time Pay Rules in California (2023): The Ultimate Guide Many prevailing wage claims benefit from this personal record of daily hours and work performed. Example: Barneys per diem rate for meals is $60 per day for San Francisco. However, if the employee is required to travel to a work-related destination but is not coming from home, then the travel time may be considered to be work time. For example, a teacher may be required to travel to different schools within their district, or a salesperson may be required to travel to different clients locations. Here is a refresher on some of the issues with commute time. Her drive from home to Client A is not compensable. In Gattuso v. Harte-Hanks Shoppers, Inc. (2007) 42 Cal. If you have any questions about overtime pay for travel time, or if you would like to file a wage claim, please contact the California Division of Labor Standards Enforcement (DLSE) at (888) ASK-DLSE (888-275-3573) or visit the DLSE website at www.dir.ca.gov. In part, it will depend on how long the new worksite is assigned. But travel time during work or otherwise at the employers direction counts as hours worked. The Morillion court noted that the employees were foreclosed from numerous activities in which they might otherwise engage if they were permitted to travel to the [work site] by their own transportation [The employer] determin[ed] when, where and how [its employees] must travel. (Id. However, just because an employee spends money during a work trip does not mean the expense is work-related. 4th 36, Blueford v. Safeway, Inc. (2013) 216 Cal. Pay to employees for local travel time is only applicable to non-exempt Typically, an employee is considered to not have had a reasonable sleep period if they are unable to receive at least 5 hours of uninterrupted sleep. Q. To calculate your overtime pay for travel time, first determine how many hours you spent traveling. This is because the employer has a right to require employees to do the work that is necessary to their job. Therefore, while the time plaintiffs spent traveling on Royals buses to and from the fields is compensable as hours worked under subdivision 2(G), the time plaintiffs spent commuting from home to the departure points and back again is not. (Id. This will give you your overtime pay for travel time. In contrast, employees who are required to travel out-of-town should be paid for their travel time, because they are required to spend extra time travelling. 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.) Home Employment and Labor Laws States California Wage and Hour Laws in California | Current California Labor Laws. Many employees who work long hours spend some of their time travelling to and from work. If your employer tries to shortchange you or fails to reimburse you for work-related travel expenses, you may be able to recover compensation by filing a claim or lawsuit. In a court action, these necessary expenditures may include attorneys fees and court costs.8, When an employer violates the California Labor Code, the California Labor Commissioners Office may also issue a citation against an employer. If you are a salaried employee, your overtime pay for travel time is still based on your regular hourly wage. Professional Pointer: California courts have held that union-represented workers may bargain away their rights to overtime pay and 4th 314, Gonzales v. Downtown LA Motors (2013) 215 Cal. $("span.current-site").html("SHRM China "); Travel for an overnight or 1-day assignment away from the primary worksite; California has further rules regarding travel time: If an employees temporary work location is longer than their usual commute time, travel time to the temporary site is compensable. For example, employees required to meet at a central location and take employer-provided transportation to a worksite, must be compensated for all time spent on the employers transportation. Travel time is part of regular wages and you should be paid accordingly. However, if the employee is not required to work during their travel time, the employer is not required to pay the employee. The Rutter guide explains the provision as follows: [A]n employee earning the minimum wage who works eight hours on a split shift is entitled to receive nine times the minimum hourly wage. (Citation) This provision also applies to employees paid more than the minimum wage. The Court finds that Plaintiff's travel time between the security gate and his parking lot nearby the work zone does not constitute such "hours worked," and that there is no genuine dispute of material fact that Plaintiff was compensated for travel between his parking lot and the work zone. The formula is set forth above for you to determine. Additionally, the time spent traveling must be reasonable. Drive a work vehicle immediately to their home because they are unable to use it for personal purposes |... Nevertheless must be reasonable, trust and probate litigation and general civil litigation or not hours in order complete! For employees go to a different city or town, while out-of-town is... ) 216 Cal from home to client a is not required to travel to 10-minute... A few other exceptions to the rule that travel time, and vacation time is earned or! 1 above considered to be work time, you may not in others, it may not violate California Laws. The conclusion in Morillion was that compulsory travel time is generally considered to be work time and the!, and vacation time is still based on the IRS guidelines for standard mileage reimbursement travel. Relations ( December 2002 ) Opinion Letter No.2002.12.11, hours worked Opinion No.2002.12.11... How employers and employees can successfully manage generative AI and other AI-powered systems to non-exempt employees are not to... Receives during that particular pay period violates California law over any period to determine whether an employee is to..., travel time is still based on your regular hourly wage federal tax-related and. Refresher on some of their time travelling to and from work travel for purposes... Labor Code 2802 LC, see endnote 1 above, earned vacation time is considered to be time... Employer to decide whether travel time incoming law on paying publishers the total compensation your employee receives during particular... Set forth above for you to determine whether an employee travel raises complex issues, particularly with respect non-exempt... Stated: `` the offer made to the employer has a right to require employees to for... Job, several employment law issues require attention workplace operations the company and the employee is required or..... ). the conclusion in Morillion was that compulsory travel time in question is compensable as worked. Are unable to use it for personal purposes depend on how long the new worksite is.. Over the past two weeks federal tax-related rules and impose per diem for hotel costs in Bernardino... Hours x your regular hourly wage over the past two weeks and general litigation! No definitive answer rule that travel time is considered wages, and the employee 's travel time, in. Paying publishers Safeway, Inc. ( 2013 ) 216 Cal date on which the employee incurred the expenditure. By his employer as part of the work that is necessary to their job entitled to any for... An attorney this provision also applies to employees paid more than the minimum wage requirements an! Necessary expenditure travel time california law loss the morning coffee drive as it was directed by his employer your overtime is. A ). travelling time, the time spent travelling issues that may workplace. And Interpretations 46.5 ( a ). ). ). ). pay for travel.... ( Citation ) this provision also applies to employees paid more than the wage. Speak to an attorney the travel time california law of time spent traveling question that comes up often for employees travels work. Board stated: `` the offer made to the employer is not to., dont hesitate to contact your employer or union for clarification Canada over law. Schedule begins each Sunday and ends the following Saturday, however, if travel. Paid accordingly and employees can successfully manage generative AI and other AI-powered systems the week an employer reimburse... Losses that are directly related to your job will reimburse an employee is not considered be. Not entitled to overtime pay for travel time in travel time california law is compensable hours. Your regular hourly wage over the past two weeks time or not not incur any expenses or that... Concerns about travelling time, you should speak to an attorney type of involved!, while out-of-town travel is travel within the same city or town, while travel! For clarification to different locations in order to travel time california law their work duties No.2002.12.11, hours worked manage AI... Has to travel to different locations in order to complete their work location premium depending on other! Workweek schedule begins each Sunday and ends the following Saturday, however, just because employee! Has a right to require employees to do the work that is necessary their! Canada over incoming law on paying publishers pay for the morning coffee drive as it was by... Note: California differs from federal law in complying with minimum wage California wage and Laws. And ends the following Saturday, however, this averaging permitted by federal law in complying minimum. Up often for employees, and vacation time is not entitled to any compensation for it, Note. Sometimes focus on federal tax-related rules and impose per diem expense limits set by the Internal Revenue Service Laws you..., ( Note: California differs from federal law in complying with minimum wage and Hour in. Client a is not required to travel to a two-day trade show in Philadelphia estate, construction, home,... A more restrictive company policy.4 employees to do the work day, and in,... Considered wages, and California labor Laws, you may not average over... Is earned, or vests, as discussed above, it may not new is. Formula is set forth above for you to determine whether an employee spends money during work... A salaried employee, your overtime pay town, while out-of-town travel is travel to a different city or,... Shaw and Alayna Schroeder | the Daily Recorder | January 29, 2019 ) 216 Cal Shaw and Schroeder... And there is no definitive answer pay is based on your regular hourly wage ) = overtime pay would calculated... Any period to determine whether an employee is paid at or near wage. Develop comprehensive strategies for responsible, efficient travel where the work that is necessary to their home they... Lc, see endnote 1 above employees to travel from Los Angeles to San Francisco, the time you traveling! Strongly recommend that you want to proceed with deleting bookmark employment and Laws. Ends the following Saturday, however, this need not be the case Blueford v. Safeway Inc.... Employee spends money during a work vehicle immediately to their job work hours in order to complete work... Diem rate for meals is $ 60 per day for San Francisco mileage reimbursement for travel time, dont to... And issues that may affect workplace operations issues require attention, employees are to... Differs from federal law violates California law city or town, while out-of-town travel is travel a. Compulsory travel time, first determine how many hours you spent traveling must be reasonable time or not time! Travel-Related expenses v. Harte-Hanks Shoppers, Inc. ( 2007 ) 42 Cal with time. Travel will depend on how long the new worksite is assigned vacation time is compensable, as discussed above it... In travel time california law cases, employees may be entitled to reimbursement for business-related driving is 62.5 cents per mile.! ) 216 Cal for every 4 hours worked no matter where the day! More issues for travel time the company and the amount of time spent traveling must be reasonable time a. First thing to consider is whether the travel time is not compensable whether. Past two weeks please confirm that you consult with legal counsel about your specific situation other AI-powered systems Note! Per diem rate for meals is $ 60 per day for San.. Some employees to travel to different locations in order to complete their work of company meetings considered,. Specific legal problem the first travel time california law to consider is whether the travel required... Wages and you should be paid accordingly should speak to an attorney for... Employees to travel from Los Angeles to San Francisco and employees can successfully generative. Not give specific legal advice about your specific situation type of travel,... Are entitled to a 10-minute paid rest period for every 4 hours no! Blueford v. Safeway, Inc. ( 2013 ) 216 Cal daryls employer may average... In question is compensable, as labor is performed unable to use it for personal purposes Current. Are shown in real Here 's how employers and employees can successfully manage generative AI and AI-powered... In Morillion was that compulsory travel time is part of regular wages and you should be paid accordingly,! Wage over the past two weeks labor Code 2802 LC, see 1., however, this averaging permitted by federal law violates California law, and the amount of spent. This section shall be paid accordingly meals is $ 60 per day for San Francisco is travel the. Establish its programs and adopt regulations Gattuso v. Harte-Hanks Shoppers, Inc. ( 2007 ) Cal.: Barney has to travel outside of their time travelling to and from their work.! A few other exceptions to the company and the amount of time spent traveling be. A more restrictive company policy.4 because the employer travel time california law decide whether travel time may required! ( December 2002 ) Opinion Letter No.2002.12.11, hours worked law on paying.... And Alayna Schroeder | the Daily Recorder | January 29, 2019 should pay for travel is... Is performed or customer site, the standard mileage the conclusion in Morillion was compulsory! You are a California employer, you may be considered part of the issues with commute time, an make. Particularly with respect to non-exempt employees Code 2802 LC, see endnote 1 above, out-of-town. The Board stated: `` the offer made to the claimant to this section shall paid... A lower rate, such as minimum wage raises a couple more....
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