Sophia Serrao
Thu., December 12, 2024
On October 30, 2024, the U.S. Court of Appeals for the Seventh Circuit issued a ruling in Walters v. Professional Labor Group LLC which now requires employers to pay overtime (or regular wage) for travel time under certain circumstances. The Seventh Circuit decision applies to Illinois, Wisconsin, and Indiana directly, but will likely see nationwide impact with this new case law. With this new precedent, employees who regularly travel due to their job, outside of a normal commute, should consider whether they are being fairly compensated for that time.
When is an Employee Paid for Travel Time?
The Fair Labor Standards Act guarantees covered employees both a minimum wage for all hours worked, and overtime pay for hours worked over 40 hours in a week. What constitutes hours of work is always in question and in disagreement between an employee and their employer. Generally, at minimum all scheduled hours of work are to be paid correctly. A consideration that some employees should take into account is if their job requires travel time that is not a normal commute. Compensation for travel time has been highly contested but generally, an employee will not be compensated for commute time, or traveling from their home to their assigned work location, as this is normal home to work travel. This is true even if an employee is driving a company or job-related vehicle. On the other hand, travel time pay can be compensable when an employee is required to travel for work outside of their normal work hours or days, or when an employee is required to travel during their workday.
Some states have laws that are more generous to workers than the FLSA, and require employers to pay for travel time in situations where the FLSA does not.
What is New According to the Seventh Circuit?
The Court clarified that the “normal travel” rule, or the commute, does not apply when employees travel to a remote location and remain there overnight for days or weeks. Instead, the Court ruled that travel that keeps an employee away from home overnight is clearly worktime when it cuts across the employee’s workday. The Court noted that an ordinary commute requires that an employee return to their home at the end of the workday. If the employee does not both leave and return home on the same day, their travel time was not ordinary commuting time and therefore could be compensable. This time is an employee substituting travel for other duties. The Court did not clarify how to calculate or consider what applies as a “workday” under this new scenario. The Court also held that the time spent traveling could also count toward the employees’ weekly overtime accumulation, making it that much easier for an employee to go over 40 hours a week to be eligible for overtime pay.
The Walters Defendant has asked for the Seventh Circuit to review the decision en banc (meaning a full judge panel) contending that the decision conflicts with case law. While on appeal, the decision stands.
If you think your employer is not paying you correctly for all your hours worked, including possibly a travel time violation, reach out to MSE today at info@mselaborlaw.com or through our website to schedule a free consultation with an experienced labor and employment attorney.
