Reimbursing employees for Uber rides

Q           Must we reimburse an employee for the expense of an Uber ride if we normally reimburse her for taking the bus? She needs to go to another worksite for business purposes, and there’s no bus option.

Employers are generally required to reimburse employees for work-related expenses, including travel costs, but commuting to and from work typically isn’t compensable. Employers are welcome to volunteer to reimburse for certain expenses.

Under the Fair Labor Standards Act (FLSA), an employee’s travel time is compensable when it’s necessary for or an integral and indispensable part of the employee’s principal activities. Principal activities generally refer to the activities the employee is employed to perform—i.e., once the employee arrives ready to work. Consequently, if an employee is employed to perform certain duties that require travel to and from certain worksites, then that would likely be an activity that’s compensable under the FLSA. Notably, the Portal to Portal Act amended the FLSA to exclude any preliminary or postliminary activities, like commuting to work, walking to work, or undergoing screenings to and from work.