Travel time pay: when travel counts as work

A practical guide for employers with field crews, multi-site teams and staff who travel for work.

In shortUnder federal rules, a normal commute from home to work is not paid time. Travel that is part of the workday, such as driving between job sites, is paid. A one-day trip to another city is generally paid except for the usual commute, and overnight travel counts when it cuts across the employee’s normal working hours. These rules apply to non-exempt employees; some states add more.

Why travel time matters

For businesses with technicians, cleaners, home care workers, construction crews or sales staff, travel can be a large share of the day. If it is treated incorrectly, the error repeats every shift for every employee, and it quietly builds into a back-pay risk. Travel can also push weekly hours past 40 and trigger overtime.

The federal rules come from the Fair Labor Standards Act, the Portal-to-Portal Act and the Department of Labor’s interpretive rules on hours worked (29 CFR Part 785). Below are the main situations, in plain language. Our glossary entry on compensable time explains the wider concept.

Ordinary home-to-work commute

Normal travel from home to the employee’s regular place of work, and back home at the end of the day, is generally not hours worked. This is true whether the employee works at a fixed location or at different job sites within the normal commuting area.

The commute can become paid time in some cases, for example when the employee must first stop at the shop to pick up tools, instructions or a company vehicle. In that case the workday usually starts at the shop, and the drive from the shop to the job site is work.

Travel during the workday

Time spent traveling as part of the day’s work is hours worked. Typical examples:

This is where many employers underpay, especially when employees clock out at one site and clock in at the next. If the employee is traveling for work between those punches, that time generally needs to be paid. Our article on field employee time tracking covers practical setups.

One-day trips to another city

When an employee who normally works in one city is sent for the day to another city and returns the same day, the travel is generally hours worked because it is performed for the employer’s benefit. The employer may deduct the time the employee would normally spend commuting.

For example (fictional), an employee who normally commutes 30 minutes each way is sent to a client three hours away and back the same day. The travel totals six hours; subtracting the usual one-hour round-trip commute leaves five hours of paid travel, in addition to the time spent working at the client.

Overnight travel

Travel that keeps the employee away from home overnight is treated differently. Under federal rules:

Example: overnight trip for an employee who normally works 9 a.m. to 5 p.m. (fictional)
Travel segment Paid?
Sunday flight from 1 p.m. to 4 p.m. as a passenger Yes, it falls within normal hours (even on a Sunday)
Sunday flight from 6 p.m. to 9 p.m. as a passenger Generally no, outside normal hours
Thursday drive home of 4 hours, driving required by the employer Yes, driving required by the employer is work
Working on a report during the flight Yes, any work performed counts

Company vehicles

Using a company vehicle for the commute does not, by itself, make the commute paid time. Under the Employee Commuting Flexibility Act amendment, commuting in an employer vehicle is generally not compensable if the travel is within the normal commuting area, the use is subject to an agreement, and the employee is not doing other work along the way. Loading equipment, receiving dispatch instructions or making required stops can change that.

State rules can be stricter

Some states follow the federal approach closely, while others are more protective. California, for example, has its own rules on compensable travel and may count time spent on employer-required transport. Some states also require reimbursement of vehicle expenses for employees who use personal cars. Check the rules in each state where your employees travel, and see our California labor laws overview as an example of how state rules differ.

How to set a travel time policy

  1. List the travel patterns in your business: commutes, between-site travel, same-day trips and overnight trips.
  2. Decide for each pattern whether it is paid, based on federal and state rules, and get advice where it is unclear.
  3. Explain when employees should clock in and out, for example at the first job site or at the shop.
  4. Make it easy to record travel between sites, and avoid instructions to clock out while driving between jobs.
  5. Address mileage and expenses separately from time.
  6. Review the policy when routes, job types or locations change.

Tracking travel time accurately

Travel is easiest to pay correctly when it is recorded as it happens. The EZTime mobile app lets employees clock in from the field, with GPS location if you enable it, so managers can see when the workday started and where. Combined with timekeeping best practices and clear policies, this keeps travel hours visible in timesheets and in payroll exports, and overtime alerts warn you when travel pushes someone toward 40 hours.

Frequently asked questions

Is commuting time paid?

A normal commute from home to work and back is generally not paid under federal law. Travel during the workday, such as between job sites, is paid.

Do I pay for travel between job sites?

Yes. For non-exempt employees, time spent traveling between work locations during the workday is generally hours worked.

Is time on a plane for a business trip paid?

Passenger time during the employee’s normal working hours is generally paid, even on weekends. Passenger time outside normal hours generally is not, unless the employee is working.

Does travel time count toward overtime?

Yes. Paid travel time is added to the employee’s hours worked for the workweek.

Is mileage the same as travel time?

No. Mileage or vehicle reimbursement covers expenses; travel time pay covers hours. Both may apply.

Where to go next

Related reading

GPS stamps and approved locations

Field staff clock in from the EZTime app with a GPS stamp, and geofencing can limit clock-ins to approved locations.

Disclaimer: This guide is general information only and is not legal, payroll or tax advice. Federal, state and local rules vary and change over time, so check current requirements with the Department of Labor, your state labor agency or a qualified attorney or payroll professional before making decisions. Examples are fictional.