Reducing an Employee's Wages for Non-productive Hours: Travel Time (Part 3 of 3)
Posted on 9/20/2018 by Michael Zamora
Meetings, trainings, travel, and even on-call time can and will be incurred at some point in your businesses quest to deliver optimum service. This often leaves employers asking themselves two important questions: (1) Am I required to pay an employee for time spent training? And (2) If so, how much?
All time spent traveling for mandatory work events, including trainings, meetings, seminars, etc., must be compensated. Additional reimbursements regarding travel time are:
● Mileage (currently 54.5 cents per mile in 2018). Mileage will be calculated from the office or the employee’s home to the designated location. This can be calculated by using Google maps or some other GPS mapping resource—typically the easiest way to calculate this is to have the employee come to the office first, then head to their location so you can guarantee that travel time and mileage is accurate.
● Parking fees. Fees regarding parking of personal vehicles is subject to reimbursement. You may designate a stipend that restricts spending to an allotted dollar amount. Additionally, all employee should be made aware that receipt verifications are required for all reimbursements.
● Public transportation (including Uber/Lyft/taxi/rideshare services). Public transportation is subject to reimbursement. If you are not compensating mileage for employees using their own car, then you will need to compensate for transportation via public transportation. Like all reimbursements, employees should be made aware that they are responsible for receipt verifications for all reimbursements.
Implementing a reduced non-productive wage is very complex. It’s imperative that you take the proper steps to outline a detailed policy that protects you from future employment claims. For assistance implementing a non-productive reduced wage, contact an employment law attorney or HR professional.