Commuting and Compensation: Federal law vs. California law

Commuting in a company vehicle is required for many employees in California. An important question is whether or not that commuting time is compensable for the employee. California and federal law differ, however, in regards to such commutes. A recent Ninth Circuit federal case highlights this sharp distinction.

In Rutti v. LoJack, the plaintiff was a technician who installed LoJack anti-theft units in cars. He was dispatched each day directly from his home to the homes of customers, where he would install the units. During these trips he was required by the employer to use a company vehicle, and he was prohibited from making any personal stops or detours. Mr. Rutti was paid on an hourly basis; however, he was only paid from the time he arrived at the first customer’s house until he finished the last installation of the day.

The federal court found that the time Mr. Rutti spent “commuting” was not compensable time under the Fair Labor Standards Act (FLSA). Therefore, he was not entitled to FLSA pay for the time he spent traveling to and from his first and last jobs of the day.

California law operates differently. In California, the law requires compensation for all time “during which an employee is subject to the control of an employer.” Thus, the requirement to use a company vehicle and to refrain from any personal detours would be sufficient “control” to trigger the employer’s duty to compensate the employee under the Labor Code. Because California’s law regarding commuting and compensation is more favorable to employees, employers need to be mindful of it.

Drafting a proper termination letter

Terminating the employment relationship with an employee is never easy. Yet when the time has come to let an employee go, it is important to do it the right way. Oftentimes employers get into trouble for how a termination occurred, not why. Drafting a proper termination letter can help avoid such problems.

Employers may wish to include the following in a termination letter: (1) Notice that the action was a termination; (2) The date of the termination; (3) The reasons for the termination ­– avoid being too vague or too specific; (4) The dates and subject matter of prior warnings – this is especially useful when documentary evidence supports prior discipline; (5) Benefits to which the employee is entitled; (6) Circumstances under which the employee had access to a second review or appeal of the termination – here is where an employer may agree to characterize the employee's departure as a layoff, resignation, or retirement; (7) The employee's last day of work and what company property must be returned by that date; and (8) The date, time, and place for an "exit interview" – at the exit interview, the employer should notify the employee that a paycheck for final wages, including accrued unused vacation time, will be provided.

At the termination meeting, the employee should be given the original letter. Employers would be wise to also give a copy of the letter to the employee’s immediate supervisor and place an additional copy in the employee’s personnel file.
While there are no guarantees that a terminated employee will not seek redress after a termination, a properly drafted termination letter goes a long way to prevent problems down the road.