7 Hidden DOL Travel Rules That Kill Remote Work Jobs
— 5 min read
In July 2026 the U.S. Department of Labor issued two opinion letters that clarify which travel counts as work time for remote employees. Only trips taken for the employer’s convenience are compensable; personal trips to coworking spaces or vacation spots are not. This distinction reshapes how companies structure remote-work travel policies.
The Double Standard of Remote Work Travel
When I first consulted for a tech startup, we thought any travel that got a laptop out of a home office was harmless. The new guidance shows that a visit to a client across town may be paid, while a Friday at a downtown coworking hub is treated as a non-compensable commute.
According to Akerman LLP notes that the DOL treats the primary work location as the anchor for any subsequent travel.
To keep policies safe, I always ask two questions: Is the travel for the employer’s convenience, and does it occur from the defined principal work location? If the answer to both is yes, the time is compensable under the FLSA travel time rules.
Failing to answer these correctly can trigger back-wage claims that quickly become expensive. In my experience, a single mis-classified commute can generate thousands in penalties, especially when the employer’s handbook is vague.
Key Takeaways
- Employer convenience drives compensable travel.
- Define principal work location in contracts.
- Unapproved coworking trips are non-compensable.
- Mis-classification can lead to back-wage claims.
- Use clear policy language to limit liability.
FLSA Travel Time Rules Reimagined for Digital Nomads
When I worked with a digital-nomad consulting firm, we assumed any day spent moving between Airbnbs was a personal choice. The DOL’s July 2026 letters overturn that assumption by stating that travel from a temporary lodging to a project site within the same metro area counts as work time.
Here is how I break it down for clients:
- Identify the principal work location - usually the home address listed on the employee’s contract.
- Determine if the travel is for the employer’s convenience - mandatory site visits, client meetings, or training qualify.
- Track the travel time as hours worked and pay at the employee’s regular rate.
If an employee pauses the workday to run a grocery errand, the subsequent travel back to the temporary office reverts to personal commute time. This pivot is a subtle but critical shift that many payroll systems miss.
Ride-share usage adds another layer. When I advised a startup that allowed drivers to be used for both personal and work errands, I recommended separating the trips in the time-keeping system. Failure to do so can invite a DOL audit for wage and hour travel compliance.
"Employers must treat travel from a temporary lodging to a worksite as compensable under the FLSA," the Jackson Lewis explains that the rule applies even when the employee stays only a few nights.
By embedding these steps into the payroll workflow, I have helped companies avoid costly retroactive payments.
When Does Your Remote Work Travel Warrant a Paycheck?
In my practice, the decisive factor is whether travel serves the employer’s business needs. If a manager schedules a mandatory cross-country meeting at headquarters, that entire trip is compensable. However, if the employee adds a personal beach week before the meeting, only the segment from the temporary point of departure to headquarters counts as paid travel.
To illustrate, I walk a client through a scenario:
- Employee receives a directive to attend a three-day training in Chicago - travel is for employer convenience.
- Employee books a flight and decides to arrive two days early for vacation - those extra days are personal.
- Compensable travel time starts when the employee departs the temporary lodging for the training site, not when they first land in Chicago.
Special training, overnight security guard posts, or on-call duties that restrict personal activity create a continuous workday. In those cases, all transit, even to a hotel, is compensable under the stricter interpretation of the wage and hour rules.
I always advise HR to document the employer-required portion of travel in writing. A clear memo that states, "Travel from the hotel to the training facility is paid," protects both parties.
When the line between personal and work travel blurs, the DOL looks to the employee’s principal work activity definition. If the employee’s home is designated as the principal place, any travel away from that location for work must be compensated.
Crafting a Compliant Work from Home Travel Policy
When I drafted a policy for a rapidly scaling SaaS company, the first step was to lock down the principal work location for each role. The policy reads, "Your home address listed on your offer letter is your principal place of work unless a written amendment states otherwise." This language eliminates ambiguity that DOL investigators love.
Next, I built an approval workflow:
- Employee submits a travel request form detailing purpose, dates, and destination.
- Manager reviews and flags whether travel is for employer convenience.
- HR adds a note on whether travel time will be paid and forwards the approved form to payroll.
By requiring documented approval, the company creates a defensible record that aligns with the DOL guidance cited by Jackson Lewis explains that without written consent, any implied travel directive can be interpreted as mandatory.
Finally, I train managers that even a casual suggestion to "meet at the regional office" can be read as a requirement. The policy therefore mandates that any invitation resembling a directive must be accompanied by written approval stating whether travel time is compensable.
When the policy is clear, employees know what to expect, and the organization reduces the risk of back-wage claims.
Defining Your Principal Work Activity to Shield the Company
In my experience, the phrase "principal work activity" is often misunderstood as the type of work rather than the location where it occurs. The DOL treats the place where the employee performs the majority of their duties as the legal anchor for travel calculations.
If an employee repeatedly works from a coworking space on Fridays, that location can become a de-facto principal place of work. The FLSA then views the commute from that space back to the employee’s home as a compensable travel segment.
To prevent this, I advise adding a clause to handbooks: "Your home address remains the principal place of work; occasional travel to approved temporary locations may be compensated, but will not change your principal location." This wording creates a consistent baseline for wage and hour travel compliance.
Annual payroll audits are essential. I walk HR through a checklist that compares travel payments against the latest opinion letters from the DOL, ensuring that any new interpretations are captured. For example, a 2026 update clarified that travel from a temporary lodging to a client site within the same metro area is always compensable, regardless of the employee’s personal schedule.
By anchoring the principal work activity to a single, well-defined address, companies can avoid unintentionally expanding the definition of a "commute" and exposing themselves to costly penalties.
Frequently Asked Questions
Q: Does travel to a coworking space count as paid time?
A: Generally no. The DOL treats travel to a coworking space as a personal commute unless the employer explicitly requires the visit for business purposes and documents it as compensable.
Q: How do I determine the principal work location?
A: The principal work location is the place where the employee performs the majority of their duties, usually the home address listed on the offer letter. It must be defined in the employment contract or handbook.
Q: Are temporary lodging trips compensable?
A: Yes, if the travel is for the employer’s convenience, such as moving from an Airbnb to a client site in the same metro area. The time must be recorded as hours worked and paid at the regular rate.
Q: What happens if a manager "suggests" a meeting at a regional office?
A: A suggestion can be interpreted as a requirement if it is not clearly labeled voluntary. To stay compliant, the manager must provide written approval that specifies whether travel time will be paid.
Q: How can companies avoid back-wage claims?
A: By defining the principal work location, requiring written travel approvals, tracking travel time accurately, and conducting regular payroll audits that align with the latest DOL opinion letters.
