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  1. #1
    Join Date
    May 2013
    Posts
    2

    Default Receiving Travel Compensation Instead of Wages and Overtime for Job-Related Travel

    My question involves employment and labor law for the state of: Indiana

    My employer pays me 17.00/hour
    I have a take-home company vehicle and a credit card only for fuel

    I am required, every day, to travel from my home, to my office, to retrieve equipment. I then drive 1 hour to a job site to work an 8 hour day. At the end of the day, I'm required to travel 1 hour, straight to the office to drop off time-sensitive samples and the equipment I picked up at the beginning of the day. I then travel 2 miles to my house and park my company vehicle for the night.

    My employer pays me for 40 hours of work on a paycheck with taxes taken out and benefits deducted ect...

    I get a separate check for $175.00 with no taxes withheld, this check is called "travel compensation"

    I believe my employer should be paying me for 48 hours of work each week totaling $935. ((40 hours x 17.00) + (10 hours x 25.5))

    Instead I get $855.00 (40 hours x 17.00 = $680) + ($175 travel money)

    I feel like I'm being shorted, I'm also concerned about the $175 of untaxed income I'm receiving each week.

    Is my employer breaking the law? I know this would be different if I was traveling straight from home to the job site each day, but I'm not, I'm going to the office first. I feel like the clock should start when I get to the office and begin loading equipment and it should end at the office when I unload the equipment.

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Indiana Travel Compensation and Shorted Overtime

    basically, given your situation, you are due pay from arriving at the shop (considering that as the actual starting time) and when you leave the shop at the end of the day (presuming you leave at your quitting time).


    You are not owed travel time to or from home.

    Your employer can pay you a reduced rate for the travel time as long as it meets or exceeds any applicable minimum wage.

    Because that is "earned" pay, it is taxable. If they are not withholding taxes and whatever from that pay, they are in violation of the law.


    this is all with the presumption you are not covered by a collective bargaining agreement or some other exception to the law based on a specific job description.

  3. #3
    Join Date
    May 2013
    Posts
    2

    Default Re: Indiana Travel Compensation and Shorted Overtime

    You say that they can pay me at a reduced rate, ok. But they're paying a flat rate instead of an hourly rate. I'm paid hourly for all other work which is always at least 40 hours. Shouldn't they be forced to pay me hourly for travel and apply the overtime law of 1.5x hourly rate since I'm always over 40 hours in a week if you consider travel time to and from the job site?

  4. #4
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Indiana Travel Compensation and Shorted Overtime

    since you say there is a regular and consistent travel time to the job, it could likely be argued your travel time is the same amount of time every day. Unless you record the exact travel time and report that, I do not see them being having a problem with the "flat time" for the travel.

    but yes, if you are paid hourly, then to properly calculate your wages, they would have to use actual time. Anything over 40 hours does become overtime. When you get into multiple pay scales, it goes beyond my familiarity with the issue. Somewhere along the line both pay scales are considered but how I don't know.

    There are a couple folks that post here that are very knowledgeable on these issues. Hopefully they will add some input.

  5. #5
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Receiving Travel Compensation Instead of Wages and Overtime for Job-Related Trave

    Technically, OP should be due 17 X 32= $544 for days 1-4 spent on site. $7.75 x 8= $62 for travel days 1 -4. Then $25.5 x 8= $204 for day 5 and $11.625 x 2= $23.25 for a weekly wage of $833.25. This does not sound like a hill to die on.

    or

    $748 plus $85.25.

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