Travel Time Pay For Hourly Employees Explained In 2025

In 2025, understanding travel time pay for hourly employees is more important than ever. With remote work, hybrid arrangements, and field-based jobs becoming common, questions about how to properly calculate compensation for time spent traveling continue to grow. Employers need to ensure compliance with the fair labor standards act and other applicable laws, while workers want to be certain that their time on the road or in the air is considered fairly and legally.

This guide provides a detailed explanation of travel time, when travel is considered compensable, and how companies should structure policies to pay hourly employees and pay non-exempt employees correctly.

What counts as travel time in 2025?

Travel comes in many forms. From a simple drive between different job sites in a regular workday to long overnight travel involving flight time, workers and managers must understand which travel hours count as hours worked.

1. Normal commuting time – Under federal law and the portal to portal travel rule, the time an employee spends on a home to work travel commute is generally not considered compensable. The same applies when the employee arrives at work and then goes to work at home at the end of the shift. This commuting time is not usually paid time.
2. Travel during an employee's regular work hours – If an employee travels as part of their job duties during their employee’s normal work hours, that time must be paid. Even if the worker travels on weekends, if it falls inside their normal work hours, it is compensable.
3. Travel between job locations – Going from one job site to another or visiting client locations in the same workday is considered compensable. The time employees spend moving between sites is part of the employee’s principal activity and job execution.
4. Overnight travel – Travel involving hotels and airports is more complex. Flight time or waiting at an airport terminal can count as hours worked depending on specific circumstances, such as if it overlaps with normal work hours or if work related tasks are required.
5. One day trip – If a non-exempt employee traveling is sent on a one day trip out of town, the time spent traveling minus the normal commuting time is considered compensable.

How the FLSA defines travel pay

In the US, the labor standards act FLSA sets national rules for travel pay. According to the hour division of the department of labor, the following guidelines apply:

• Travel during normal work hours is treated as hours worked.
• Meal periods, such as a lunch period or rest periods, do not count as compensable time unless work duties continue.
• Time spent waiting at an airport terminal or during transfers can be compensable if it’s part of the employee’s regular working hours.
• Overtime pay at the overtime rate of one half times the standard rate applies if travel pushes non exempt employees beyond 40 work hours in a week.

The FLSA ensures that employers must pay employees at least the minimum wage for all travel hours that are considered compensable. If workers are covered under local laws, such as those in New York which have stricter protections, employers must ensure compliance with those as well.

Exempt vs. non-exempt employees

Understanding whether workers are non exempt or exempt employees is critical.

• Non-exempt employees: These workers are covered by the FLSA, so employers must pay non-exempt employees for time spent traveling that qualifies as hours worked. They are also eligible for overtime pay.
• Exempt employees: Salaried staff classified as exempt employees typically do not receive additional travel pay, unless company policy states otherwise.
• Salaried employees: Many salaried workers may still question fairness, but the FLSA’s rules focus on hourly employees and non-exempt categories.

Practical examples of travel time pay

Example 1: Local travel between job sites

A technician drives between job sites during regular working hours. This time spent must be compensated as hours worked, and if overtime thresholds are reached, the employer owes overtime pay.

Example 2: Overnight travel with waiting

An employee travels on Sunday for Monday morning training. The time spent waiting at the airport terminal during their normal work hours must be paid. If the employer requires training requested by management, the hours are compensable as part of work related tasks.

Example 3: One-day trip

A worker takes a one-day trip to another city. The time spent traveling, excluding their home to work commute, is counted as paid for travel time.

Employer responsibilities

To stay compliant, companies must:

• Follow the fair labor standards act and all applicable laws.
• Keep clear company policies about travel pay and how to pay hourly employees.
• Ensure accurate time tracking of travel hours and time spent traveling.
• Respect meal periods and rest periods during travel.
• Provide mileage reimbursement for use of personal vehicles, where required.
• Always ensure compliance with minimum wage requirements and local regulations like those in New York.

Why fair travel pay matters

At its core, travel time pay for hourly employees reflects fair compensation for the time employees spend away from a fixed location to perform work related tasks. Whether going to client locations, attending training, or shifting between sites, travel is often essential for job execution.

Fair pay ensures that when an employee works, their contributions are valued, and non-exempt employee traveling is not overlooked.

In 2025, both employers and hourly employees must understand the rules around travel time pay. From home to work travel to overnight travel, the key principle is whether the travel falls within normal work hours or supports the employee’s principal activity. The labor standards act FLSA, combined with local laws, provides the framework, but it’s up to businesses to maintain company policies that respect both legal obligations and fair compensation.

By respecting the value of time, paying at least the minimum wage, and applying the correct overtime rate, employers can maintain trust, protect their workforce, and avoid costly labor law violations.