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Billing for Travel time, but not giving Employee credit for the time traveled towards

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Brad2005

Junior Member
What is the name of your state?, CO
Is it legal for a corporation to bill for "travel time", but not give the employee credit for the time traveled towards a 40 hour work week?
Isn't this a case of billing for hours not worked?

I bring this up because it is a current policy for all employees to make up their time traveling to client sites for work even though they bill the client at a 50% reduced hourly rate for the time the employee is traveling.

Thank you,
Brad2005
 


pattytx

Senior Member
Brad, there is no legal correlation between what hours the employee is paid for and for what hours the company bills a client.

The issue here is if the employee is getting paid correctly for hours spent travelling to/from a client. Of course, this only applies to nonexempt employees. If you are correctly classified as an exempt employee, it is a moot point.

If you want to know details about travel time for nonexempt employees, try this for starters:
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_785/29CFR785.34.htm

If you need clarification after that, please post back. To tell you the truth, I did consulting (as an employee) for 5 year and know lots of consultants. I have never heard of any companies that bill a client for travel time; expenses, yes, travel, no.
 

Brad2005

Junior Member
Thank you

Hi PattyTX,
Thank you. This is for nonexempt employees so it is a good match.
Have a wonderful day,
Brad
 

Brad2005

Junior Member
just out of curiosity

Why don’t exempt employees benefit from this provision and is it standard business practice not to pay exempt employees for travel time to client sites?
Thank you,
Brad
 

pattytx

Senior Member
Because legally, for exempt employees, the employer doesn't have to.

Just FYI, I was an (employee) consultant for a software vendor for 5 years and was a road warrior. I was exempt. Our compensation package included a "bonus" for each billable hour and the rate was higher if we were at the client site instead of working from our home offices. Also, my boss (at least) didn't care a whole lot if, for instance, I got in very late Thursday night and I didn't "work" on Friday as long as I could stay in touch via my cell phone. I spent a number of Fridays at the Shreveport casinos during those weeks! :D
 

cbg

I'm a Northern Girl
Because, Brad, exempt employees are not paid on the basis of how many hours they work. Yes, it is standard practice not to pay exempt employees for travel time.
 

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