General Inquiries

Drive Time

  • 1.  Drive Time

    Posted 01-09-2019 17:27
    I was wondering if anyone would mind sharing their drive time policy?

    We have jobs outside of our city and wonder how others compensate their employees. Pay them for their drive or reimburse mileage?


    Christine Rivera
    Via Technology, LLC
    San Antonio TX
    (210) 227-7726

  • 2.  RE: Drive Time

    Posted 01-10-2019 07:55

    We pay time and mileage at the current IRS limits.



    Thank you.


    Vickie L Hartley



    Com Grnd Const Logo Black as of 2-1-2018 - size 2x3

    218-740-3666 ext 2




  • 3.  RE: Drive Time

    Posted 01-10-2019 07:56
    I work for an accounting firm servicing construction clients.  I think that our policy can be applied anywhere though.  The firm policy is that we reimburse mileage in excess of our normal daily commute.  For example, my commute to the office is 25 miles one way, so if I go to a client that is 50 miles from my house I only get reimbursed mileage for 25 miles.  We also pay employees for their drive time the same way.

    Dennis J. Shindle, Jr. CPA, CCIFP
    Senior Manager
    Rotz & Stonesifer, P.C.
    Chambersburg PA
    (717) 264-5961

  • 4.  RE: Drive Time

    Posted 01-10-2019 09:27
    It depends, we have a policy for all types of travel.
    Is the project a Prevailing Wage project or a private project?
    On private projects we use a straight line mileage chart, based upon how many straight line miles to the project determines the amount of travel pay is given.

    Kelly Yost
    Construction Manager
    Fresno CA
    (559) 261-8235

  • 5.  RE: Drive Time

    Posted 01-10-2019 09:47
    We did research on this topic a few years back and came up with the following plan:
    Trips where the employees are traveling in a company vehicle to and from a job on a daily basis are paid at their full hourly rate, including travel time.
    Pay for trips that require an overnight stay is the regular hourly rate (or overtime rate, if applicable) to the driver of the company vehicle.  Passengers are paid minimum wage (or minimum wage overtime, if applicable).  Employees are also compensated with per diem pay for overnight travel.
    I hope this information is helpful.

    Hollie Richard PHR, SHRM-CP
    Office/Human Resource Manager
    Audet Electric, Inc.
    Robertsdale AL
    (251) 947-4707

  • 6.  RE: Drive Time

    Posted 01-10-2019 11:31

    Hey Christine,

    It seems as though company trucks and auto allowances are widely used throughout the industry. 

    For those who get neither, I've been impressed by a policy which pays for mileage outside of a "home base."

    Whether the company's shop or the employee's home serve as "home base," any miles driven beyond a designated threshold get's paid at the company's reimbursement rate.  It's probably the most equitable approach I've seen for reimbursing craft workers.



    Dana Jensen, CCIFP                                 

    Construction Financial Leader

    The Woodlands, Texas

    (503) 201-4871


  • 7.  RE: Drive Time

    Posted 01-10-2019 11:59
    Hi Christine,
    We are an electrical contractor that travels nationwide.  According to our DOL attorney, we don't have to pay for travel time from the employee's home to our offices, shop, or jobsite.  However, once an employee is "at work", all travel time between jobs and to a job must be compensated for.  Travel time can be paid for at a different rate than time spent on the job inasmuch as they are two different tasks.  The only catch is, the employees have to acknowledge this arrangement (which can be done in an employee handbook or upon hiring) and have to show on their submitted time what was spent traveling or working.  We pay travel at minimum-wage and work labor at electrician wages.  Keep in mind that the rate of pay must be at least at minimum wage for the state they are working in.

    Regardless of whether you establish different rates of pay for different activities, you will need to be careful to comply with any Davis Bacon or Service Contract Act jobs requiring a specific rate of pay.

    One more thing you will want to research:  Payment of different rates can become complicated when you have to calculate overtime. There are two different methods that can be used to calculate the overtime rate: 1-the weighted averaged or blended rate method 29 CFR 778.115; or 2-the rate in effect method 29 CFR 778.419. This second approach requires prior agreement of the employee.  The cited references are very helpful.

    Another issue you may run into is if your jobsite is located in a location where the employee has to travel away from their home and establish a temporary (home away from home) in order to complete the work.  We established a policy for employees that are doing this of a paid travel time to travel home.  In this case, we pay the employee travel time to go from their "home" to their "home away from home."

    I hope some of this is useful and not too complicated.

    Fred Barlow
    Vice President
    Reliance Electric
    Denver CO
    (720) 749-2850