New DOL Opinion Letter: Is Commute Time Compensable for Partial Day Remote Work?

Hybrid schedules are now a standard part of many workplaces, but payroll teams are still sorting out when a commute during the workday belongs on the timesheet. The Department of Labor (DOL) recently addressed a recurring question: When a nonexempt employee works both at home and onsite in the same day, is the travel time compensable?

In a July 22, 2026, opinion letter, the agency analyzed three specific situations involving voluntary hybrid schedules. It concluded that the travel remained an ordinary commute that primarily benefited the employee, so employers generally would not have to count the time as hours worked.

The DOL considered three scenarios:

• An employee works from home in the morning, drives in after rush hour, drives home before the evening rush, then finishes the day at home.
• An employee takes on extra project work but wants to do it from home before her regular commute, instead of arriving early or staying late at the office.
• An employee who relies on public transportation leaves work in time to catch the last bus, then finishes his assigned work, including overtime, once he’s home.

In each scenario, the travel was voluntary, and no work was performed while traveling.

A Closer Look at Compensable Commute Time

The DOL emphasized an important distinction for payroll purposes: Travel between job sites during the workday generally must be paid. However, an employee’s home does not become a second job site simply because the employee performs some work there.

Instead, the agency said ordinary home-to-work travel remains noncompensable, even when the employee works at home before or after the commute, so long as the travel is voluntary and primarily benefits the employee.

Applying this standard, the DOL determined that each of the three employees was engaged in an ordinary commute rather than travel that counted as work under the FLSA.

Moreover, the DOL clarified that “ordinary home-to-work travel that occurs during the workday constitutes a third category of time during the workday, in addition to bona fide meal breaks and off-duty time, that is not considered ‘hours worked’ under the FLSA.”

Practical Takeaways

This DOL opinion letter is limited to voluntary commutes that replace part of an employee’s existing trip to or from work. It doesn’t cover:

• Travel between two work locations
• Time spent working during the commute, and
• Schedule changes required by the employer, not requested by the employee.

To apply this guidance:

• Get the employee’s request for a split schedule in writing, and
• Keep timekeeping in place for all work performed before and after the commute.

More info: FLSA2026-9.