How are non-exempt employees paid for travel time?

Under the FLSA, when must nonexempt employees be paid for travel time? Generally, time spent traveling is compensable, unless it is normal home-to-work commute time, or when travel requires an overnight stay and the time spent traveling as a passenger falls outside of the employee’s normal work hours.

Is hourly pay non-exempt?

Hourly: An individual who receives an hourly wage for work performed. Generally, such individuals, because of the method of payment, are classified as nonexempt and are subject to the overtime provisions of the FLSA.

How does travel pay for nonexempt employees work?

Travel Pay for Nonexempt Employees Pay for nonexempt employees traveling on business is governed by provisions of the Fair Labor Standards Act (FLSA). Travel time will be paid at the employee’s regular hourly rate, or overtime rate when the total number of hours worked is in excess of 40 in a pay week (Sunday through Saturday).

When to pay employees for local travel time?

Pay to employees for local travel time is only applicable to non-exempt (hourly) employees, not to exempt (professional or managerial) employees. Exempt employees are paid for their expertise by the job, not by the hour.

What’s the difference between an hourly and non exempt salary?

Hourly / Salary, Exempt / Non-Exempt; What’s the Difference? 1 Non-exempt. In the United States, a non-exempt employee is an employee that 1) must be paid at least the federal minimum wage for all hours worked during a workweek up 2 Exempt. 3 Hourly. 4 Salary. 5 Reality Check. …

What is the definition of a non-exempt employee?

In the United States, a non-exempt employee is an employee that 1) must be paid at least the federal minimum wage for all hours worked during a workweek up to 40 hours, and 2) must be paid at a rate of pay that is equal to one-half times the regular rate of pay for all hours worked over 40 during a workweek.

Do you have to pay for travel for non exempt employees?

Non-exempt employees (regular, limited term or temporary) must be compensated for time spent traveling based on the guidelines outlined below. The number of compensable travel hours depends on whether the trip is one day only or overnight, and whether the travel time takes place within normal or outside of normal work hours.

When do you not have to pay for travel time?

U.S. Department of Labor. Time spent in home-to-work travel by an employee in an employer-provided vehicle, or in activities performed by an employee that are incidental to the use of the vehicle for commuting, generally is not “hours worked” and, therefore, does not have to be paid. This provision applies only if the travel is within…

When is travel time for nonexempt employees compensable?

Compensable time The two hours of travel time on Friday and the two hours of travel time on Saturday are compensable time because it is during regular work hours of 8:30 am to 5:00 pm. The hours worked on Friday and Saturday are also compensable time.

What happens if you don’t pay a non exempt employee?

Failure to pay a non-exempt employee for compensable travel time can lead to both straight-time and overtime pay claims. One travel time issue that has confounded employers relates to business travel involving an overnight stay.