Different Rates of Pay for Travel Versus Work
It is actually permissible to pay an employee a lower hourly rate for time spent in work related travel, so long as state and federal minimum wage requirements are met and the employee is advised prior to traveling that he/she will be paid less than the employee’s standard rate for the time spent in travel.
Be aware, however, that time spent by an employee traveling between job sites is considered work time and needs to be compensated at the employee’s normal rate.
While commuting time is generally not compensable, once the workday begins all time spent traveling will almost always be deemed work time. “Hours worked” generally include all time an employee must be on duty, whether at the employer’s premises or at any other prescribed place of work.