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.