User Tag List

Page 1 of 3 123 LastLast
Results 1 to 10 of 21

Thread: Paying employees for drive time

  1. #1
    Join Date
    Mar 2016
    Location
    Tacoma, WA
    Posts
    13
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Paying employees for drive time

    Just curious what other companies out there are doing for drive time. I've heard people talk about getting a lower wage for the time that they are driving a company vehicle on company time. We pay our guys a full wage no matter what they are doing, driving or working.

  2. #2
    Join Date
    Jan 2009
    Location
    3 Hr 2 Min from Winged Horses
    Posts
    15,950
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Full wage. Extra wages for special duties, never less at any time. Prolly illegal to pay less for any duty.
    "Electricity is really just organized lightning." George Carlin


    Derek

  3. #3
    Join Date
    Oct 2007
    Location
    New Jersey
    Posts
    6,238
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    My old company had zones drawn around the shop location, indicating the time allowance allotted to drive from the shop to a customer site, or from one customer to another in a different zone. Techs were still paid their regular wage, but might have to do some explaining if travel time from point A to B seemed excessive. It was far from perfect. The first zone in the immediate vicinity of the shop had zero minutes allowed. You can't get to the corner drug store in NJ in under 15 minutes. For the installation group it was even trickier. Do you make the tech come into the office when he's 15 minutes east away from a 2 week job, but 45 minutes west from the office? What if the drive is 90 minutes one way? As far as I know, they're still struggling with that, especially as they let the techs take company trucks home (mostly so they are available for emergency calls).

  4. #4
    Join Date
    Dec 2016
    Location
    Royal City, WA
    Posts
    228
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    About 15 yrs ago I worked for an Oregon based company. They had three pay rates. Prevailing wage; state mandated wage rates for work performed on site. Seemed like it was $25-$40 per hour, no per diem. Private work & shop rate $18 per hour plus $110 per diem (4 days). And finally, travel time from shop to job sites; minimum wage!

  5. #5
    Join Date
    Feb 2003
    Location
    New Jersey
    Posts
    3,771
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    IMHO, it should be something like the following scenarios :
    1. If an employee drives to the shop and picks up a vehicle he should be paid regular wages for any drive time to and from the job
    2. If an employee takes the vehicle home with him then his time should start at whatever the regular business hours are (i.e 8:00 AM-4:30 PM). If he is required to be on the job between those hours then whatever time he spends driving to that job he should be compensated for in some way (either by wage or adjustment of hours)
    3. If an employee has to drive to a job and gets paid for only the time on the job then some type of zone system compensation like Gadfly described should be used
    4. If your employee agrees, switch him over to a wage only compensation instead of hourly. The down side of that is you end up paying for a lot of idle time. But, if he's a valuable employee and you have a lot of work it could work out in your favor. At least that way you know how much he's going to cost you every week

  6. #6
    Join Date
    Dec 2006
    Location
    Eastern Oregon
    Posts
    3,653
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    We get full shop rate for everything we do, including driving.

  7. #7
    Join Date
    Jun 2004
    Location
    Cherry Valley NY, Seattle, WA
    Posts
    4,918
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    I thought that by law, if you are in a company vehicle, you have to be on the clock (may vary from state to state)? At least that is what I heard from the company I do some sub work for. We were doing a prevailing wage job 2 hours away and the drive tune was adding up.
    Ethan Brush - East West Electric. NY, WA. MA

    "You can't generalize"

  8. #8
    Join Date
    Oct 2007
    Location
    New Jersey
    Posts
    6,238
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by electrofelon View Post
    I thought that by law, if you are in a company vehicle, you have to be on the clock (may vary from state to state)? At least that is what I heard from the company I do some sub work for. We were doing a prevailing wage job 2 hours away and the drive tune was adding up.
    YMMV for state projects, but if the prevailing wage was Davis-Bacon for a federal project, the employer is allowed to discriminate based on drive time and pay only your standard rate for driving to and from the work site. So, you go to the shop, get in your company vehicle, and drive an hour to the job site. At the end of the day, you drive an hour back to the shop. You get paid 2 hours at your regular rate and 6 hours at the prevailing rate.

  9. #9
    Join Date
    Dec 2007
    Location
    NE Nebraska
    Posts
    38,781
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by jumper View Post
    Full wage. Extra wages for special duties, never less at any time. Prolly illegal to pay less for any duty.
    Simple solution, full wage is the lower rate, nearly all duties except for drive time are "special duties"

    Quote Originally Posted by electrofelon View Post
    I thought that by law, if you are in a company vehicle, you have to be on the clock (may vary from state to state)? At least that is what I heard from the company I do some sub work for. We were doing a prevailing wage job 2 hours away and the drive tune was adding up.
    Loophole alert: sleep in the company vehicle and get paid for all hours of the night

    You need to figure in travel as well as other non direct production time as part of your overhead costs and set service rates or bid accordingly. If you have to fight over this with your employees they will leave you. Treat them well and they may make you more money out of respect and loyalty, treat them like pawns and they will only do what is necessary to keep their job - until they find one that looks better.

  10. #10
    Join Date
    Jun 2016
    Location
    Tampa, FL, USA
    Posts
    1,905
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by goldstar View Post
    IMHO, it should be something like the following scenarios :
    1. If an employee drives to the shop and picks up a vehicle he should be paid regular wages for any drive time to and from the job
    2. If an employee takes the vehicle home with him then his time should start at whatever the regular business hours are (i.e 8:00 AM-4:30 PM). If he is required to be on the job between those hours then whatever time he spends driving to that job he should be compensated for in some way (either by wage or adjustment of hours)
    3. If an employee has to drive to a job and gets paid for only the time on the job then some type of zone system compensation like Gadfly described should be used
    4. If your employee agrees, switch him over to a wage only compensation instead of hourly. The down side of that is you end up paying for a lot of idle time. But, if he's a valuable employee and you have a lot of work it could work out in your favor. At least that way you know how much he's going to cost you every week
    According to the IRS, employees need only be paid when they are working. Commuting to/from work is not working regardless if they are driving a company vehicle or their own. Commuting time does not have to be paid. Driving between jobs (the morning job and the afternoon job) is working time and must be paid. Driving home from the afternoon job is commuting. Note that if you require your employees to stop at the shop first thing in the morning, commuting ends there. And if they stop at the shop last thing before going home, commuting begins there.

    Now if you are asking employees to drive exceptionally long distances to a job site, an out of town job for example, some additional compensation may be required in order to not have them quit, (you're increasing their costs and thus lowering their compensation) but it is not legally required.

    Having a company vehicle is a bonus for employees and not a reason to give them additional compensation. Their costs are lowered by using your vehicle, and usually your gas.

    Companies should reimburse employees at the current IRS mileage rate if they use their own vehicle for company business:
    (1) any trips that are not commuting such as driving to a second job same day or fetching material from a vendor.
    (2) any trips where company tools or materials are carried including commuting.


    Note: the last time I read the IRS regulations was a few years ago. Things may have changed. The above is my company's method.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •