Travel time pay during the holiday season is a topic that frequently creates confusion for both employees and employers, especially when it involves tasks like mandatory trainings, store visits, and business-related airport runs. Understanding when travel time is compensable and how to handle it can help avoid legal disputes and ensure employees are treated fairly. In this blog, we’ll explore the legal framework surrounding travel time pay, address common scenarios like training and store hops, and explain what employers need to do to stay compliant.
Understanding Travel Time Pay: What’s Compensable and What’s Not? 
The concept of travel time pay revolves around whether or not the time spent traveling for work-related tasks is compensable—meaning, does the employer need to pay the employee for the time spent traveling? For many employees, this becomes especially pertinent during the holidays, when additional tasks such as training sessions, store visits, and airport runs may require travel outside of regular work hours. This can be a stressful time for businesses trying to navigate labor laws and stay compliant, while employees wonder if their travel time will be compensated appropriately.
To answer the central question, travel time is generally compensable when employees are required to travel for work. However, the details depend on the nature of the travel and when it occurs during the workday. According to the Fair Labor Standards Act (FLSA) and various state laws, employees may be entitled to pay for travel if:
- The travel occurs during work hours (regardless of whether it’s on a regular workday or holiday).
- The employee is traveling for work purposes—like attending training or making store visits.
- The travel involves working during travel, such as answering emails or performing other job-related tasks during transit.
Employers should always ensure they have clear policies about how travel time is handled, especially during the holiday season when the need for additional staffing or mandatory training is high.
When is Travel Time Considered Paid?
For employers, it’s crucial to understand what constitutes compensable travel time and what doesn’t. A lot of it hinges on whether the employee is “engaged to wait” or “on duty.” Understanding these two concepts will clarify whether travel time during the holidays needs to be paid.
Travel During Regular Work Hours
If an employee is required to travel during regular work hours, the time spent traveling is generally compensable. This rule applies to holiday travel as well, even if the travel is related to a training session or visiting multiple stores. If employees travel as part of their regular duties (such as visiting locations to perform business tasks), their travel time is considered part of their working hours.
Travel Outside of Regular Work Hours
When employees travel outside of their normal working hours, things become trickier. In most cases, time spent traveling to work-related activities—like attending mandatory training—outside of regular working hours is compensable. However, the amount of pay and whether it includes overtime may depend on the duration of the travel and the local labor laws.
For example, an employee traveling for training might receive regular pay for the travel time during their normal working hours, but if they travel after hours, overtime pay may be applicable, especially if they exceed the 40-hour workweek.
Travel for Overnight Trips
In some cases, employees may be required to travel overnight for business purposes. This situation requires extra attention to determine if overnight travel is compensable. Typically, if the employee is expected to perform work while traveling (even on an overnight trip), that time is considered compensable. However, if the employee is free to use the time for personal activities, such as sleeping or engaging in personal activities, this may not be considered paid time.
Holiday Travel Time Scenarios: What Employers Need to Know
As a business owner, the holidays can be a particularly tricky time for travel, especially when employees are required to attend training sessions, visit multiple store locations, or make airport runs. Let’s look at several common scenarios where travel time pay applies.
Training During the Holidays
During the holiday season, it is common for employers to conduct mandatory training for employees. These sessions may require employees to travel long distances, whether to a conference, a training center, or another location. In these cases, employers need to ensure that employees are compensated for their travel time, especially if the training takes place outside regular working hours.
- What’s Compensable? If the training occurs outside of the employee’s regular working hours and the employee is required to travel, that travel time is generally compensable. Additionally, the employee should be paid for the time they are engaged in training.
- Overtime Considerations: If the travel time and the training time exceed 40 hours in a workweek, overtime rates may apply.
Store Hops and Field Visits
Employees in retail or sales positions may need to visit multiple stores or field locations during the holiday season. Whether the visits are to check inventory, manage displays, or oversee sales activities, this travel time is typically compensable.
- What’s Compensable? If employees are traveling for business purposes (such as making store visits or performing tasks at other locations), the time spent traveling between locations during the workday should be paid. However, regular commuting time from home to the primary worksite is not typically compensable.
- Local vs. Remote Visits: If the travel involves overnight stays or extended trips to remote locations, employers must ensure that employees are compensated for both the travel time and the time spent at the location.
Airport Runs and Offsite Business Tasks
In some industries, employees are required to travel by air for business. This could include tasks like flying to meetings, business conferences, or offsite assignments. If employees are required to make airport runs during the holidays, they should be compensated for the time spent traveling.
- What’s Compensable? Travel to and from the airport can be compensable if employees are required to be “on duty” during transit (such as preparing for meetings or conducting business-related tasks while traveling). If the employee is simply traveling to the airport without engaging in work activities, some states may not require compensation, unless specified by company policy.
Exceptions to Travel Time Pay During the Holidays
While most travel time related to work is compensable, there are exceptions to consider:
- Commuting Time: Time spent traveling from home to the primary worksite is generally not compensable, even during the holidays.
- Voluntary Travel: If the travel is voluntary or not required by the employer (for example, an employee chooses to attend a work-related conference during their vacation), the time may not need to be compensated.
- Home-to-Work Travel: If the employee is commuting from home to another job site, compensable travel time may apply in some situations, such as when an employee performs work tasks during transit.
Holiday Pay vs. Travel Pay: Understanding the Differences
It’s important to distinguish between holiday pay and travel time pay. Holiday pay typically refers to premium pay (e.g., 1.5x the hourly rate) for working on a recognized holiday. Travel time pay, on the other hand, refers to the time spent traveling for work, which may or may not be paid, depending on the circumstances.
Employers are not legally required to pay employees extra for travel on holidays unless stipulated by contract, company policy, or union agreements. However, employers should review their policies to ensure they are providing clear guidance to employees regarding travel time pay, particularly when it overlaps with holiday pay.
What Employers Can Do to Stay Compliant
To avoid legal pitfalls and ensure fair pay practices during the holiday season, employers should:
- Establish Clear Travel Policies: Employers should have a clear written policy outlining how travel time is compensated, especially for travel that happens during holidays or outside of regular working hours.
- Consult Legal Counsel: If in doubt, employers should consult with legal counsel to ensure that their travel time pay policies comply with local, state, and federal laws.
- Track Travel Time Accurately: Employers should have a system in place to accurately track employee travel time, particularly when it occurs outside of regular work hours or involves overtime.
- Offer Clear Communication: Employees should be informed ahead of time about whether their travel time will be compensated and at what rate.
Understanding and managing travel time pay during the holidays can be challenging, but it’s important for employers to stay compliant with labor laws and ensure fair compensation for employees. From mandatory training sessions to store hops and airport runs, employers must be proactive in defining compensable travel time and communicating policies clearly. At The Myers Law Group, we help businesses navigate the complexities of employment law and ensure they remain compliant during the busy holiday season. If you’re unsure about your travel time pay obligations, reach out to us for a consultation.