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Travel Time Compensation Regulations for North Carolina Workers

Key Takeaways

In This Article

Many jobs require a degree of travel beyond simply getting to work. Depending on your profession, you might have to travel with others to a worksite, visit clients, or attend off-site training. In some cases, travel is actually a part of the workday for which employers must compensate their employees. It’s essential to know the difference between unpaid and paid travel time and get what you are owed for your hard work. If you believe your employer unfairly withheld wages for travel time in North Carolina, contact the experienced unpaid wages attorneys at Maginnis Howard today.

The Fair Labor Standards Act

The Fair Labor Standards Act of 1938 (FLSA) establishes basic protections for employees in the United  States. Notably, the FLSA guarantees rights such as a Federal minimum wage and time-and-a-half compensation for overtime work. The law also limits the number of hours a minor can work to prevent abusive child labor practices.

A 1947 amendment to the FLSA, the Portal-to-Portal Act, clarified the conditions of a “compensable workday.” The amendment defined employers’ responsibilities and strengthened employee protections from wage theft.

The North Carolina Wage and Hour Act

The North Carolina Wage and Hour Act (NCWHA) mirrors and reinforces many of the crucial aspects of the FLSA to protect employees from wage theft. The law explains rights relating to:

In applying the NCWHA, North Carolina courts have adopted many of the FLSA’s standards for commutes, worksite travel, and other employer-related travel.

Did You Know?

A study by Rutgers University estimates that $238 million is stolen from North Carolina minimum wage employees each year.

What Travel Time is Not Paid?

The Portal-to-Portal Act and NCWHA clarify that employers are generally not required to pay employees for commuting time, including travel to the worksite before their shift or returning home afterward. This time, called “non-compensable”, is not included in any labor regulation.

What is Paid Travel Time?

Several common scenarios constitute “compensable” (eligible for compensation) hours.

  1. Trips between job sites.

    This type of trip is the most common and straightforward exemption. An employee who travels between worksites for the benefit of their employer must be paid for the travel time. For example, a traffic signaling employee may start their day by clocking in and picking up a company vehicle. The trip from their home to the vehicle would not qualify. However, if they take this vehicle to pick up tools for the day’s work, that time is compensable.

  2. Special assignments.

    As previously mentioned, travel to your normal workplace is non-compensable. However, you could be eligible for compensation if you are temporarily reassigned to a location at that time. Example: a team of construction workers has a dedicated worksite, but their employer asks them to work at another site temporarily. The law considers this travel time out of the typical commute process.

  3. Travel as a function of the job.

    Some jobs rely on near-constant travel. The FLSA does not allow employers to withhold payment for travel if it is essential to the job function. The most straightforward examples include delivery drivers, sales representatives, and field technicians dispatched to a site to perform a job.

  4. Travel away from home.

    “Travel away from home” applies explicitly to travel that keeps an employee away from home overnight. It becomes compensable when the time cuts across regular working hours. For example, an employee regularly works 9 am-5 pm Monday through Friday. That employee must be compensated if they were to travel during those same hours on a Saturday or Sunday.

Compensation for Unpaid Wages

Recovering unpaid wages can be a taxing and financially destabilizing process. The NCWHA recognizes the importance of employers paying their employees completely and efficiently. The statute allows employees to recover not only the amount they are owed, but also potentially “liquidated damages”. This could be equal to the amount of the unpaid wage amounts- effectively doubling your award. To help make legal action accessible to all employees, the courts may order your employer to pay for legal costs and attorney fees.

Example

The US Department of Labor successfully sued traffic control company Area Wide Protective (AWP) for unpaid wages. Employees working as road flaggers did not receive compensation for time spent transporting co-workers in a company vehicle to and from job sites as requested by AWP.

How to Ensure You Receive Compensation

  1. Document Everything

    Keep meticulous records of your travel, including dates, times, destinations, purpose of travel, and how you traveled. Accurate record-keeping of travel time is crucial to any unpaid wages case.

  2. Understand Company Policy and Your Employment Contract

    The FLSA and NCWHA set the minimum standards for employers. However, many workplaces offer more robust benefits regarding travel during the workday. Therefore, employees should consult company policies and contractual agreements for guidance on travel time pay.

  3. Contact an Attorney

    If your employer refuses to pay your legally earned travel time, contact the experienced unpaid wages attorneys at Maginnis Howard for help. An attorney can provide important insights into your potential case and guide you through the lawsuit process.

Experienced Representation for Unpaid Wages

Whether travel time is compensable in North Carolina is not a simple yes or no. It’s a complex area governed by specific rules designed to ensure employees are paid for the time they spend working for their employer’s benefit. If you believe your employer has unlawfully withheld wages for travel time, contact us today. We assist clients in unpaid wages claim across the Carolinas from our Raleigh, Fayetteville, and Charlotte offices. 

Travel Time Unpaid Wages FAQ

Generally, Portal-to-Portal rules do not apply to independent contractors. Therefore, employees must be appropriately classified as written in the Fair Labor Standards Act.

The de minimis doctrine is a legal term for short periods of time that would be difficult to record correctly. It allows employers to disregard extremely small amounts of time. The exact amount of time is not easily determined, but in some cases, it involves trips of up to 10 minutes. If you believe your employer is inappropriately applying the de minimis principle, contact us for a free consultation.

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