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The Department of Labor published two opinion letters regarding how the Fair Labor Standards Act (FLSA) applies to employee pay relating to employee training or work travel.
The FLSA says that employers must compensate employees for all hours of work, but it doesn’t define what qualifies as work. The Supreme Court says employees should be compensated for any time that “is spent predominantly for the employer’s benefit.”
The first opinion letter (FLSA2020-15) contains six different scenarios about how DOL regulations apply to situations involving voluntary training during and outside working hours.
Employers must compensate their employees for any time they are “suffered or permitted to work.” This may include time for walking, traveling, or riding if it is related to the employee’s principal duties. However, an employee’s commute to and from work is not usually compensable.
The second opinion letter (FLSA2020-16) addresses three different scenarios where employees are required to travel to complete their work assignments.
Employers should review the scenarios discussed in both opinion letters and determine if the new guidance affects their current employee classification and payroll practices.
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