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1.3 FLSA Hours Worked, Travel Time, On-Call & Waiting Time

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1 Chapter 1: Worker Classification, Section 530 & FLSA Hours

1.1 Worker Status & Common Law Classification Tests 1.2 Statutory Employees, Statutory Non-Employees & Section 530 Relief 1.3 FLSA Hours Worked, Travel Time, On-Call & Waiting Time 1.4 Public Sector Payroll, Government Contract Acts & Youth Employment

2 Chapter 2: FLSA Exemptions, Pay Frequency & Wage Payments

2.1 FLSA White-Collar Exemptions & Salary Basis Test 2.2 Pay Frequency Laws, Direct Deposit & NACHA Compliance 2.3 Payroll Cards, Paycheck Delivery & Constructive Receipt

3 Chapter 3: Employment Taxes & Core Benefit Concepts

3.1 Federal Employment Taxes: FICA, FUTA & Federal Income Tax 3.2 Section 125 Cafeteria Plans, FSA & HSA Mechanics 3.3 Third-Party Sick Pay, Disability & Professional Payroll Ethics 3.4 Benefit Law Compliance: ACA, COBRA, HIPAA, FMLA, ERISA & Workers' Compensation

4 Chapter 4: Withholding Forms, I-9 Verification & Information Returns

4.1 Form W-4 Withholding Certificates & Lock-In Letters 4.2 Form I-9 Employment Eligibility, E-Verify & Nonresident Aliens 4.3 Form W-2, W-3 & 1099 Year-End Information Reporting

5 Chapter 5: Payroll Tax Returns, Deposit Schedules & Multi-State Compliance

5.1 Federal Payroll Tax Returns: Forms 941, 944, 940 & Schedule B 5.2 Federal Tax Deposit (FTD) Schedules, Lookback Periods & EFTPS 5.3 Multi-State Taxation, Nexus & SUI Localization 5.4 New Hire Reporting, Common Paymaster, Pay Agents & Multiple Worksite Reporting

6 Chapter 6: Recordkeeping, Escheatment & Statutory Penalties

6.1 Payroll Recordkeeping Requirements & Retention Schedules 6.2 Escheatment Laws & Unclaimed Property Compliance 6.3 Information Return Penalties & IRC § 6672 Trust Fund Recovery Penalty

7 Chapter 7: Global Payroll, Nonresident Aliens & International Compliance

7.1 Resident vs. Nonresident Alien Status, Visas & Treaty Withholding 7.2 Expatriate Payroll: Tax Equalization, Hypothetical Tax, Shadow Payroll & Currency 7.3 Totalization Agreements, GDPR & Global Payroll Governance

8 Chapter 8: Regular Rate of Pay & FLSA Overtime Calculations

8.1 Regular Rate of Pay Determination & Statutory Exclusions 8.2 Weighted-Average Overtime for Multiple Pay Rates 8.3 Special FLSA Overtime Methods: Fluctuating Workweek & 8/80 Rule 8.4 Tipped Employees: Tip Credit, Tip Pooling, Overtime & Form 8027

9 Chapter 9: Supplemental Wages, Fringe Benefits & Vehicle Valuation

9.1 Supplemental Wage Withholding: Flat vs. Aggregate Methods 9.2 Employer-Provided Vehicles & Fringe Benefit Valuation 9.3 Group-Term Life Insurance & Section 79 Imputed Income

10 Chapter 10: Involuntary Deductions & Garnishment Administration

10.1 Child Support Withholding & CCPA Maximum Limits 10.2 Federal Tax Levies & Form 668-W Calculations 10.3 Creditor Garnishments, Student Loans & Order Priority

11 Chapter 11: Pre/Post-Tax Deductions, Gross-Up & Special Payments

11.1 Voluntary Deductions: Pre-Tax vs. Post-Tax Ordering & Limits 11.2 Gross-Up Calculations for Net Pay Guarantees 11.3 Final Pay, PTO Payouts & Deceased Employee Wage Processing

12 Chapter 12: Master File Architecture, Processing Controls & Timekeeping

12.1 Employee Master File Setup, Maintenance & Data Integrity 12.2 End-to-End Payroll Processing Cycle & Pre/Post Controls 12.3 Time and Attendance Systems, Rounding & Exception Management

13 Chapter 13: ACH Direct Deposit, Software Migration & Systems Security

13.1 Direct Deposit Operations: ACH Files, Returns & Reversals 13.2 Payroll System Selection, Implementation & Data Migration 13.3 Business Continuity Planning & Disaster Recovery

14 Chapter 14: Policies, Procedures, Department Design & Management

14.1 Standard Operating Procedures (SOPs), Policies & Compliance Governance 14.2 Payroll Department Structure, Staffing & Capacity Planning 14.3 Change Management, M&A Harmonization & Employee Communication

15 Chapter 15: Customer Service, Cross-Functional Alignment & Vendor Governance

15.1 Payroll Customer Service Delivery, SLAs & Inquiry Resolution 15.2 Cross-Functional Alignment: HR, Benefits, Finance & IT 15.3 Third-Party Vendor Management & Payroll KPI Benchmarking

16 Chapter 16: Internal Controls, Fraud Detection & Operational Audits

16.1 Internal Control Frameworks, Segregation of Duties & Governance 16.2 Payroll Fraud Schemes, Detection Techniques & Forensic Auditing

17 Chapter 17: Regulatory Audits, SOX 404 & SOC 1 Reports

17.1 Regulatory Audits: IRS, DOL, State Agencies & Penalty Defense 17.2 SOX 404 Internal Controls & SOC 1 Type II Report Governance

18 Chapter 18: Payroll Accounting Basics, Journal Entries & Accruals

18.1 Double-Entry Payroll Accounting: Gross Wages, Deductions & Taxes 18.2 Employer Payroll Tax Liabilities, FUTA/SUTA & Benefit Costs 18.3 Month-End Wage Accruals & ASC 710 Vacation/PTO Accounting

19 Chapter 19: Reconciliations, Clearing Accounts & Variance Resolution

19.1 Payroll Clearing Accounts, Zero-Balance Accounts & Bank Tie-Outs 19.2 General Ledger to Form 941/W-2 Reconciliations & Variances

1.3 FLSA Hours Worked, Travel Time, On-Call & Waiting Time

Key Takeaways Explain This Topic AI

Under the FLSA, 'employ' means to suffer or permit to work; all time spent performing activities for the benefit of the employer with the employer's knowledge is compensable hours worked.

The Portal-to-Portal Act of 1947 establishes that ordinary commute time and preliminary/postliminary activities are non-compensable unless they are integral and indispensable to principal work activities.

Waiting time is compensable when the employee is 'engaged to wait' (unable to use time effectively for personal pursuits), but non-compensable when 'waiting to be engaged' during a definite, bona fide release period.

On 24-hour shifts, an employer and employee may agree to exclude up to 8 hours of sleeping time, provided adequate facilities are provided and the employee obtains at least 5 hours of continuous, uninterrupted sleep.

Overnight travel away from home is compensable hours worked during time windows corresponding to the employee's regular working hours, across all seven days of the week, even as a passenger.

Last updated: August 2026

FLSA Hours Worked, Travel Time, On-Call & Waiting Time

Accurately calculating total hours worked in each workweek is the essential prerequisite for ensuring minimum wage and overtime compliance under the Fair Labor Standards Act (FLSA) , codified at 29 U.S.C. § 201 et seq. and regulated by the Department of Labor ( DOL ) Wage and Hour Division ( WHD ).

Under FLSA regulations (29 C.F.R. Part 785), employers must track and compensate all hours that an employee is "suffered or permitted to work," regardless of where the work is performed or whether it was formally requested.

1. The "Suffer or Permit to Work" Principle

Under 29 U.S.C. § 203(g), "employ" includes to suffer or permit to work . If an employer knows or has reason to believe that a non-exempt employee is performing work for the benefit of the business, the time spent is compensable hours worked. +-----------------------------------------------------------------------------+

  • | "SUFFER OR PERMIT TO WORK" EXAMPLES |
  • | |
  • | - An employee begins working 15 minutes before the official shift starts |
  • | to set up workstation machinery. |
  • | - An employee reviews and responds to work emails at home on a smartphone |
  • | during evenings or weekends. |
  • | - An employee corrects payroll processing errors during an unpaid lunch. |
  • | |
  • | ===> ALL ARE COMPENSABLE HOURS WORKED THAT MUST BE RECORDED AND PAID. |
  • +-----------------------------------------------------------------------------+

Warning

Prohibiting Overtime Does Not Eliminate Payment Obligations: A company policy stating "No overtime work is permitted without prior written managerial approval" does not relieve the employer of the legal obligation to pay for unauthorized overtime. If the employee performed the work, the employer must pay for the hours worked at statutory overtime rates. The employer's sole legal recourse is internal administrative discipline for policy non-compliance.

2. The Portal-to-Portal Act & Continuous Workday Doctrine

Enacted in 1947, the Portal-to-Portal Act (29 U.S.C. § 254) amended the FLSA to clarify that employers are not required to compensate employees for:

Walking, riding, or traveling to and from the actual place of performance of the principal activity (normal home-to-work commuting).

Activities which are preliminary (before) or postliminary (after) the principal activity, unless compensated by contract, custom, or practice. +-----------------------------------------------------------------------------+

  • | THE CONTINUOUS WORKDAY FRAMEWORK |
  • | |
  • | [Home] |
  • | | |
  • | v (Ordinary Commute - NON-COMPENSABLE) |
  • | [Worksite Arrival] |
  • | | |
  • | v (First Principal Activity: e.g., Donning Specialized PPE) |
  • | [=== CONTINUOUS WORKDAY BEGINS ===] <--- All intermediate time is paid |
  • | | - Core Production Work except bona fide meal periods |
  • | | - Travel Between Job Sites |
  • | | - Standby & Waiting Time |
  • | v (Last Principal Activity: e.g., Doffing Specialized PPE / Cleaning) |
  • | [=== CONTINUOUS WORKDAY ENDS ===] |
  • | | |
  • | v (Ordinary Commute - NON-COMPENSABLE) |
  • | [Home] |
  • +-----------------------------------------------------------------------------+
  • Principal Activities and "Integral and Indispensable"

Activities performed before or after the regular work shift are principal activities (and therefore fully compensable) if they are an integral and indispensable part of the employee's principal duties:

Donning and Doffing Gear ( Steiner v. Mitchell / IBP, Inc. v. Alvarez ): Changing into and out of specialized, unique protective equipment (e.g., heavy chemical suits, cut-resistant chainmail armor for meatpackers) at the employer's premises is compensable. Putting on standard generic uniforms, safety glasses, or hard hats is generally non-compensable preliminary/postliminary activity.

Pre-Shift Preparations: Warming up specialized utility trucks, sharpening meatpacking knives, or booting up required call-center software applications before answering calls are compensable principal activities.

The FLSA De Minimis Rule (29 C.F.R. § 785.47)

Under the de minimis rule , insubstantial or insignificant periods of time outside scheduled working hours (a few seconds or 1 to 2 minutes) that cannot, as a practical administrative matter, be precisely recorded may be disregarded. However, where an activity takes 5 to 15 minutes regularly , it is never de minimis and must be tracked and compensated.

3. Waiting Time: "Engaged to Wait" vs. "Waiting to Be Engaged"

Whether waiting time constitutes compensable hours worked depends entirely on whether the employee was engaged to wait or waiting to be engaged (29 C.F.R. §§ 785.14–785.16). +-----------------------------------------------------------------------------+

  • | WAITING TIME CLASSIFICATION SPECTRUM |
  • | |
  • | ENGAGED TO WAIT (Compensable) WAITING TO BE ENGAGED (Unpaid) |
  • | --------------------------------- ------------------------------ |
  • | - Waiting is integral to job. - Completely relieved from duty. |
  • | - Time controlled by employer. - Definite, predetermined duration.|
  • | - Employee cannot use time freely. - Long enough for personal use. |
  • | - Unpredictable, short intervals. - Free to leave the premises. |
  • | |
  • | *Example:* Receptionist reading *Example:* Driver given a clear |
  • | a book between customer visits. 4-hour release in town until 5 PM. |
  • +-----------------------------------------------------------------------------+

Classification Legal Standard & Operating Conditions Compensability

Engaged to Wait Short, unpredictable idle periods spent on duty; employee cannot leave or pursue personal matters effectively (e.g., machine breakdown delays, messenger waiting for next delivery). Compensable Hours Worked

Waiting to Be Engaged Employee is completely relieved from all duties for a definite, specified duration long enough to pursue personal activities freely, and informed of the exact resumption time. Non-Compensable (Unpaid)

4. On-Call Time Compensation Standards

Under 29 C.F.R. § 785.17, the compensability of on-call time depends upon the degree of restriction placed upon the employee's personal freedom. +-----------------------------------------------------------------------------+

  • | ON-CALL COMPENSABILITY SPECTRUM |
  • | |
  • | [HIGH RESTRICTION: COMPENSABLE] [LOW RESTRICTION: UNPAID ON-CALL] |
  • | - Must remain on employer premises. - Carry mobile phone / pager. |
  • | - Severe geographic radius (5-10 min). - Reasonable response time (45m). |
  • | - Highly frequent calls (3-5 / hour). - Infrequent call disruptions. |
  • | - Cannot engage in personal activities. - Free to pursue personal errands.|
  • | *Only actual work time is paid.* |
  • +-----------------------------------------------------------------------------+

Determinative On-Call Factors:

Geographic and Response Time Constraints: A requirement to respond physically within 10–15 minutes severely restricts personal freedom (pointing toward compensability), whereas a 45–60 minute window allows personal pursuits.

Frequency of Calls: If an employee is called back multiple times per hour, the cumulative disruption prevents any meaningful personal activity, rendering the entire on-call period compensable.

Use of Time: If the employee can eat, sleep, shop, attend family events, and move about freely, the standby time is non-compensable, and the employer pays only for actual time spent responding to service calls .

5. Sleep Time Rules (29 C.F.R. §§ 785.21–785.22)

FLSA regulations divide sleep time rules based on whether the scheduled duty shift is less than 24 hours or 24 hours and greater: +-----------------------------------------------------------------------------+

  • | SLEEP TIME COMPLIANCE MATRIX |
  • | |
  • | Shift Duration Permitted Exclusions & Regulatory Requirements |
  • | ------------------- -------------------------------------------------- |
  • | Shifts < 24 Hours NO sleep time deduction permitted. All hours on |
  • | duty are compensable, even if employee sleeps. |
  • | Shifts ≥ 24 Hours Up to 8 hours sleep exclusion permitted ONLY IF: |
  • | 1. Express written agreement exists. |
  • | 2. Adequate, private sleeping facilities furnished. |
  • | 3. Employee can get at least 5 hours continuous sleep|
  • +-----------------------------------------------------------------------------+
  • The Critical 5-Hour Continuous Sleep Rule

When an employer excludes up to 8 hours of sleep time on a 24+ hour shift:

Any interruption to perform work duties is compensable hours worked .

If interruptions prevent the employee from getting at least 5 hours of continuous, uninterrupted sleep , the entire 8-hour sleep period becomes compensable hours worked .

6. FLSA Travel Time Rules & Decision Framework

Travel time compensation under 29 C.F.R. §§ 785.35–785.41 depends upon the type, timing, and destination of the travel: +-----------------------------------------------------------------------------+

  • | FLSA TRAVEL TIME CATEGORIES |
  • | |
  • | 1. ORDINARY COMMUTE (Home to Work) |
  • | - Non-compensable, regardless of distance or fixed/variable worksite. |
  • | |
  • | 2. SPECIAL ONE-DAY ASSIGNMENT IN ANOTHER CITY |
  • | - Compensable travel time, MINUS the employee's usual commute time. |
  • | |
  • | 3. TRAVEL ALL IN A DAY'S WORK (Between Job Sites) |
  • | - 100% compensable hours worked throughout the scheduled workday. |
  • | |
  • | 4. OVERNIGHT TRAVEL AWAY FROM HOME |
  • | - Compensable when it cuts across REGULAR WORKING HOURS. |
  • | - Applies on BOTH regular workdays AND regular non-working days (Sat). |
  • | - Travel as a passenger outside regular hours = UNPAID. |
  • | - Time spent DRIVING a vehicle = COMPENSABLE at all hours. |
  • +-----------------------------------------------------------------------------+
  • Overnight Travel Rules (29 C.F.R. § 785.39)

When a non-exempt employee travels away from home overnight:

Regular Working Hours Window: Travel that occurs during the hours corresponding to the employee's regular workday (e.g., 9:00 AM to 5:00 PM) is compensable hours worked.

Applies to Non-Working Days: The same regular hours window applies to corresponding hours on non-working days (e.g., 9:00 AM to 5:00 PM on Saturday and Sunday).

Passenger vs. Driver:

Passenger: Travel time outside regular working hours as a passenger on an airplane, train, bus, or car is non-compensable (unpaid) , provided no work is performed.

Driver: An employee required to drive a vehicle is performing physical work; all driving time is 100% compensable , regardless of whether it falls within or outside regular hours.

  • 7. Step-by-Step Computational Travel Scenarios
  • Scenario 1: Special One-Day Assignment in Another City

An employee whose regular work hours are 8:00 AM to 4:30 PM has a normal daily round-trip commute of 40 minutes (20 minutes each way). The employer sends the employee on a special one-day assignment to another city:

Departs home at 6:00 AM, arrives at client site at 9:00 AM (3 hours travel).

Works at client site from 9:00 AM to 4:00 PM (7 hours work, including 30-minute unpaid lunch → 6.5 hours work).

Departs client site at 4:00 PM, arrives home at 7:00 PM (3 hours travel). +-----------------------------------------------------------------------------+

  • | SPECIAL ONE-DAY TRAVEL CALCULATION BREAKDOWN |
  • | |
  • | Gross Travel Time: 6.0 hours (3.0 hrs morning + 3.0 hrs evening)|
  • | Less Normal Commute Offset: -0.67 hours (40 minutes round-trip commute) |
  • | Net Compensable Travel: 5.33 hours (5 hours 20 minutes) |
  • | Actual On-Site Work: +6.50 hours |
  • | ----------------------------------------------------------------------- |
  • | TOTAL COMPENSABLE HOURS: 11.83 hours (11 hours 50 minutes) |
  • +-----------------------------------------------------------------------------+
  • Scenario 2: Overnight Travel as a Passenger on a Non-Working Day

An employee's regular schedule is Monday through Friday, 8:30 AM to 5:00 PM (with a 30-minute unpaid lunch from 12:00 PM to 12:30 PM). On Saturday (a normal day off), the employer flies the employee to a national convention:

Employee boards flight at 10:00 AM and lands at destination at 7:00 PM (total travel time = 9.0 hours).

The employee travels strictly as a passenger and performs no work while flying. +-----------------------------------------------------------------------------+

  • | OVERNIGHT PASSENGER TRAVEL (SATURDAY) ANALYSIS |
  • | |
  • | Total Travel Window: 10:00 AM to 7:00 PM (9.0 total hours) |
  • | |
  • | 1. Regular Workday Window (8:30 AM to 5:00 PM): |
  • | - Travel from 10:00 AM to 5:00 PM = 7.0 hours |
  • | - Less 30-minute regular meal period = -0.5 hours |
  • | - Compensable Travel = 6.5 hours |
  • | |
  • | 2. Outside Regular Hours Window (5:00 PM to 7:00 PM): |
  • | - Travel as passenger outside regular hours = 0.0 hours (UNPAID) |
  • | |
  • | TOTAL COMPENSABLE HOURS WORKED ON SATURDAY: 6.5 Hours |
  • +-----------------------------------------------------------------------------+