Per Diem, Travel Pay & Living Expenses
Pipeline, shutdown, wind, solar and storm work often means traveling for weeks. Travel time, per diem and expenses can add up to a big part of your pay, and they’re a common source of confusion and wage theft.
- All workers
- Construction
- Traveling workers
- California
- Illinois
When travel time is paid
Under the federal Fair Labor Standards Act, for hourly workers:
| Travel | Paid? |
|---|---|
| Normal commute from home to the jobsite | Usually no |
| Required stop at the shop or yard to load tools or get instructions, then on to the site | Yes, from the shop on |
| Driving between jobsites during the day | Yes |
| A one-day trip to another city and back | Yes, minus your normal commute time |
| Overnight travel during your normal work hours, even on a weekend | Yes |
| Overnight travel as a passenger outside your normal work hours | Usually no |
| Driving a company truck or hauling equipment and tools as required | Usually yes, because driving is work |
Some states, such as California, are stricter. Union contracts often set their own travel pay. See What Counts as Paid Time.
How per diem works
- Per diem (“per day”) is money for lodging, meals and incidentals while you’re away from home.
- Paid under an IRS “accountable plan,” at or below federal per diem rates, and only for days you’re actually away from your tax home, it’s usually not taxed.
- Per diem paid to people who aren’t really traveling, or used to replace part of your hourly wage, can be taxable and may be a sign of a pay scheme.
- Real expense reimbursements usually don’t count toward your overtime rate. But per diem that goes up with each hour worked is treated like wages and must be included when overtime is figured.
Watch for low wages plus big per diem. An offer of $12 an hour plus $150 a day per diem means your overtime is figured on $12, your Social Security and unemployment are based on $12, and your workers’ comp checks may be smaller if you’re hurt.
Expenses your employer may have to cover
- Federal minimum wage: if job-required expenses you pay for (tools, travel, lodging the employer requires) bring your pay below minimum wage for the week, the employer must make up the difference.
- Some states, such as California and Illinois, require employers to reimburse necessary work expenses, including mileage in your own vehicle.
- Prevailing wage jobs may set travel and subsistence pay in the wage determination or the union agreement. See Prevailing Wage.
Before you take a traveling job, ask
- What is the hourly rate, and how many hours a week are planned?
- How much is per diem, and is it paid for every day, or only workdays?
- Is lodging provided, or do I find my own?
- Is travel time to and from the job paid? What about mileage?
- Who pays if the job ends early or is rained out?
- Is the per diem taxed or not, and will it show on my pay stub?
- Am I an employee (W-2) or a contractor (1099)? See Employee or Independent Contractor?
Keep receipts, a log of the days and miles you traveled, and your pay stubs. If you weren’t paid for travel time, contact your state labor department or the U.S. DOL Wage and Hour Division.
Standards & references
- 29 CFR Part 785: Hours worked, including travel time (785.33–785.41)
- U.S. DOL Fact Sheet 22: Hours worked under the FLSA
- GSA: Federal per diem rates
- IRS Publication 463: Travel and car expenses
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