Does the company have to pay a carpool driver for the time spent picking up other employees to bring them to work if said driver participates in the company sponsored carpool program for which he receives an incentive?

This is a great question. So, the answer is Maybe.

DOL does not specifically address this in statute. A state agency may, however. Many employers have been advised to terminate the employer sponsored program and contract with a company like Uber or Lift to offer this benefit. The 3rd subheading of this article makes an interesting statement.

https://www.cbia.com/resources/hr-safety/issues-laws/wage-hour-issues-travel-time/

In addition to the pay concerns, there are other employer liabilities that may tie back in and cause a wage and hour question to be raised.

Here is a reference that makes some great points citing several court cases. https://www.business.com/articles/employee-carpooling-incentive-legal-liability/

To be safe, I would say pay at least minimum wage for time spent driving plus gas or mileage. Count this as hours worked for overtime purposes, as well.

June 2018

Travel Pay