I Have to Pay Wages for What?
November, 2007
Washington employees may get paid to drive to and from work.
A recent Washington Supreme Court case affects employers with employees who use a company-owned vehicle to do their work. What this case means for employers is that they need to assess whether they are paying their employees for all "hours worked." Particularly, the employer may need to pay for the time spent traveling from home to a job site.
In Stevens v. Brink's Home Security, Inc., the Washington State Supreme Court examined whether Brink's, a home security company, violated the Washington minimum wage act when it did not compensate employees for the time spent driving company-owned trucks between their homes and their first and last job site. The employer gave the employees two options: (1) drive their personal vehicles from their homes to Brink's main office and then pickup the company-owned trucks and go to their first job site; or (2) keep the Brink's trucks at their homes and drive directly to and from their first and last job sites. Under the first option, Brink's did not pay for the commute from home to the office. Similarly, under the second option, Brink's did not pay for the time traveling between home and the first and last job site. The Supreme Court held that the drivers were "on duty" while traveling between home and the job site and that the company-owned truck was "the employer's premises." Brink's was hit for a judgment for back wages over a five-year time span for 69 employees, plus interest, plus attorneys' fees and costs.
What employers need to know
Employers providing company-owned vehicles should carefully examine whether they are paying their employees for all "hours worked." Does the employer strictly control the employee's use of the company-owned vehicle(require it to be clean, prohibit other passengers, restrict to work-use only)? Does the employee travel from home to the first work-site (versus the office)? Do they begin their workday at home in receiving assignments or mapping routes?
This case also highlights the need for employers to consider if they are paying for the "hours worked" in preparatory and concluding activities. Do you require your employees to have a meeting or clean-up an area before they start their shift? Do you require your employees to clean their car or fill out paperwork at the end of the shift? If so, that is time that needs to be paid.
Please contact your Bullivant attorney with addition questions or to determine if this decision applies to your company.