Last Updated on September 12, 2025 by MyHRConcierge

Accurate time tracking and wage compliance are critical responsibilities for employers. Under the Fair Labor Standards Act (FLSA), non-exempt employees must be compensated for all hours worked. But, determining what qualifies as “compensable time” can often be complex and lead to compliance pitfalls if not properly understood.

This article outlines the key rules and interpretations surrounding compensable time under the FLSA to help employers ensure compliance and avoid wage and hour violations.

What Is “Compensable Time”?

Compensable time includes all hours during which a non-exempt employee is suffered or permitted to work. This means time the employer requires or allows an employee to work, regardless of whether the work is authorized, scheduled or requested. Common examples include:

• Time spent performing job duties
• Time spent waiting or on-call under certain conditions
• Time during mandatory training or meetings
• Time spent traveling during the workday or for certain assignments

Failure to compensate employees for all required working time may result in violations of minimum wage and overtime laws.

Common Categories of Compensable Time

Pre- and Post-Shift Activities

If an employee performs tasks before or after their scheduled shift that are integral and indispensable to their primary job duties (e.g., setting up equipment, logging into system, or changing into protective gear), that time is considered to be compensable.

Rest Breaks and Meal Periods

Short rest breaks (typically lasting 5 to 20 minutes) are considered compensable. However, bona fide meal periods (usually 30 minutes or more) generally are not compensable if the employee is completely relieved of duty. Although, if an employee works during a meal period, that time becomes compensable.

Trainings and Meetings

Time spent in training sessions, lectures or meetings must be paid, unless all four of the following conditions are true:

• Attendance is outside of regular working hours
• Attendance is voluntary
• The event is not job-related
• No productive work is performed during attendance

If any one of these criteria are not fully met, the time must be counted as working time and be considered compensable.

Travel Time

Compensation for travel depends on the type of travel:

• Home-to-work travel is not compensable.
• Travel during the workday (e.g., between job sites) is compensable.
• Travel away from home, or overnight travel, may be compensable depending on timing and job obligations during the trip.
  • Example: If an employee normally works 9 a.m. to 5 p.m., travel during those hours is paid. The time includes not only hours worked during normal working hours on regular workdays, but also during those same hours on days the employee does not normally work.
  • Non-compensable: Time spent as a passenger outside normal work hours (e.g., on a plane or bus in the evening) is not considered work time under current enforcement policy.

Unauthorized Work and “Off-the-Clock” Time

Employers must pay non-exempt employees for all hours worked, even if the work was not authorized. This includes situations where employees:

• Check emails or respond to messages after hours
• Perform tasks before clocking in or after clocking out
• Volunteer to stay late to finish a task.

Employers are responsible for preventing off-the-clock work and must enforce policies that prohibit it. Ignoring unauthorized work does not excuse the employer from compensating for it.

On-Call Time and Waiting Time

On-call time is compensable if the employee cannot use the time freely for personal purposes. For example, requiring an employee to remain on the employer’s premises or respond within an unreasonably short time can convert on-call time into compensable hours.

Waiting time is generally compensable when:

• The employee is required to remain on duty,
• The employee is engaged to wait (e.g., a repair technician waiting on a customer’s availability).

However, time spent waiting to be engaged (e.g., a person on standby who is free to use their time as they please) is generally not compensable.

Recordkeeping and Employer Responsibilities

The FLSA requires employers to accurately track all hours worked by non-exempt employees. This includes time worked:

• Outside of normal schedules
• Remotely or after-hours
• During travel or training

Failing to maintain proper records or relying on inaccurate time reporting methods can expose employers to significant liabilities, including back pay, penalties and litigation.

Employers should:

• Establish clear timekeeping policies,
• Train leadership to recognize compensable time
• Use reliable time tracking systems
• Conduct regular audits to ensure compliance

Wage and Hour Compliance

Understanding and correctly applying FLSA compensable time rules is essential for avoiding wage and hour disputes. Non-exempt employees must be paid for all hours worked, whether those hours occur during standard shifts, in training or under special circumstances like travel or on-call duty.

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