California Travel Time

There can be confusion in California, especially if you have California employees and are a Payroll or HR practitioner in another state, between travel time and mileage reimbursement. Mileage reimbursement is covered under IRS rules. Travel Time is covered under the California Wage Orders. This article will focus on Travel Time as taken from the California Wage Orders.

Travel time is considered compensable work hours where the employer requires employees to meet at a designated place, use the employer’s transportation to and from the work site, and prohibit employees from using their own transportation. (Morillion v. Royal Packing Co. (2000) 22 Cal.4th 575)

Compulsory travel time longer than the employee's normal commute is considered compensable. Travel time to a job site within reasonable proximity of the employee's regular work site is not compensable. If an employee has no regular job site, travel time to the new job site each day is not compensable. Suppose an employee has a temporary work location change. In that case, the employee must be compensated for any additional time required to travel to the new job site over the employee's normal commute time.

The definition of hours worked is found in the Industrial Welfare Commission Orders. It means the time during which the employee is subject to the control of an employer and includes all the time the employee is suffered or permitted to work, whether or not required to do so. State law does not distinguish between hours worked during the "normal" working hours or hours worked outside "normal" working hours, nor does it distinguish between hours worked in connection with an overnight out-of-town assignment.

Under state law, if an employer requires an employee to attend an out-of-town business meeting, training session, or any other event, the employer cannot disclaim an obligation to pay for the employee's time in getting to and from the location of that event. Time spent driving or as a passenger on an airplane, train, bus, taxi, cab car, or other mode of transportation in traveling to and from this out-of-town event, and time spent waiting to purchase a ticket, check baggage, or get on board is, under such circumstances, time spent carrying out the employer's directives, and thus, can only be characterized as time in which the employee is subject to the employer's control. On the other hand, time spent taking a break from travel to eat a meal, sleep, or engage in purely personal pursuits not connected with traveling or making necessary travel connections (such as, for example, spending an extra day in a city before the start or following the conclusion of a conference to sightsee), is not compensable.

The rate at which the travel must be paid depends upon the nature of the compensation agreement. If the employee has agreed to pay a fixed hourly rate for any work performed, travel time must be paid at that regular hourly rate or, if applicable, the required overtime rate. An employer may establish a separate pay rate for travel before the work is performed for hourly employees, provided the rate does not fall below the statutory minimum wage. Salary non-exempt employees must be paid at the appropriate overtime rate for any hours worked more than 8 in a day or 40 in a week, computed by converting the weekly salary to an hourly rate. (Labor Code Section 515)

All necessary expenses incurred with employer-required travel must be reimbursed to the employee. (Labor Code Section 2802) Wages (rev. 1/2011).

It is essential to define “necessary” in your travel policy. If you have any questions, please feel free to contact us.

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