Our business has tried to find the best way to compensate our employees drive time for years. All of our technicians drive to our yard and then ride in a company truck to each jobsite. This ensures all employees are onsite once work commences. It can become expensive very quickly paying regular wages to a jobsite and OT wages on the way back, which usually happens here in So. California. This can sometimes lead to double time depending on the job location. We have tried the following methods
Paid the regular hourly rate to the jobsite, clocking in at the company yard, and had the employee clock out when they left the jobsite. Then we found out we were violating labor laws as employees riding in a company vehicle are considered under the control of the employer, thus they are to be paid.
We tried paying minimum wage to and from jobsites. However, it dinged our works comp insurance due to the employee making less wages in a dual class code. In the end increased our WC premium due .We have had employees drive directly to a jobsite, however, attendance suffered greatly, as employees complained about their struggle to pay for gas.
Its a hard one to determine when considering what is best for the company and for the employee, AND without breaking state labor laws. My suggestion would be to consider how far the employee would have to commute to work. Lets say 20 miles 1 way. The employee would not get compensation for the 1st 20 miles driven in the morning and the last 20 miles driven at the end of the day. Then you compensate for the travel in between. Or maybe just pay a flat fee for anything within a 30 mile radius, 60 mile radius, 90 mile radius etc. Then you will know exactly what that travel pay will be and can incorporate that fee into the pricing for the service offered to customers.
