The Employee Commuting Flexibility Act (ECFA) makes commuting in a company car noncompensable only if the use of the employer’s vehicle is “for travel that is within the normal commuting area” of the business, explains Franczek Radelet associate Doug Hass on Wage and Hour Insights.
He notes that the U.S. Department of Labor has said compensation would be necessary if “the time involved is extraordinary.” However, Hass says the problem is that neither the Fair Labor Standards Act nor ECFA offer any definitive guidance on what constitutes a “normal commuting area” or when the time is deemed “extraordinary.” The Labor Department and courts haven’t offered a rule of thumb either.
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