Compensation

Executive Summary:

Overtime Pay for Traveling Non-Exempt Employees

The ABC Company compensation plan was designed several years ago and adopted as a best practice company wide. Our company has grown since the days of a few employees and small customer base. In recent years, ABC Company has begun increasing our customer base by supporting clients outside of our local community. We have also taken steps to ensure our technicians are fully trained through attendance of meetings and outside training sessions.

The Fair Labor Standard Act continues to evolve just like ABC Company. After a through a review of the company’s overtime pay policy for non-exempt employees, I have determined policies surrounding time spent driving to client sites are out of compliance with FLSA laws. Current policies surrounding regional meetings may be out of compliance as well.

The FLSA laws require the following to be paid, including any overtime incurred:

• It’s all in a Day’s Work: Travel time must be paid to non-exempt employees who are required travel to and from client sites to offer client support.

  • Travel time includes time from ABC Company to client location (and back).

  • Travel time includes from hotel to ABC Company (and back).

  • Travel time home does not require compensation.

• Travel time must be paid when a technician attends regional meetings or training sessions if all four of the following are true:

  • Within normal hours

  • Required by ABC Company

  • Job related

  • Other work may or may not be concurrently performed (ie answering emails)

• Travel time spent in company car or public transportation must be paid.

  • Outside of regular working hours, no travel pay is required if the technician opts to drive their own vehicle.

I recommend that the above policy changes be adopted as soon as possible to fully align ABC company policy with the current FLSA laws. Without changes to current travel time policy, ABC Company is at risk of complaints, an investigation by the Department of Labor, and possible fines.

Missy Ortman

Director, Human Resources

ABC Company