ABC Great Beginnings

Travel Pay Policy

Hourly (Non-Exempt) Employees

Policy Number	[POLICY NUMBER]	Effective Date	[EFFECTIVE DATE]
Approved By	[APPROVER NAME / TITLE]	HR Contact	[HR NAME / EMAIL]
States Covered	Utah (UT) | Nevada (NV) | New Mexico (NM) | Arizona (AZ)

Note: Items in gold require completion before publishing. State-specific variables are highlighted in gold throughout Section 11 and summarized in the State Variables table (Section 12).

Great Beginnings Academy (“the Company”) is committed to compensating all hourly (non-exempt) employees fully and fairly in accordance with applicable federal and state law. This policy establishes the rules governing pay for time spent traveling as part of work duties, ensuring compliance with the Fair Labor Standards Act (FLSA) and the laws of each state in which the Company operates.

This policy supplements the Company’s Employee Manual and supersedes any prior informal understandings about travel compensation.

Section 2 — Scope

This policy applies to all non-exempt (hourly) employees of Great Beginnings Academy working in the states of Utah, Nevada, New Mexico, and Arizona. It covers all forms of work-related travel including day trips, overnight travel, and multi-day out-of-state assignments.

Exempt (salaried) employees are not covered by this policy, as their compensation is not calculated on an hourly basis.

Section 3 — Definitions

• Home-to-Work Travel: Normal travel from home to the employee’s regular worksite. Not compensable.
• Overnight Travel: Travel to a location away from the employee’s primary worksite that requires at least one overnight stay.
• Out-of-Town Travel: Time spent traveling during the employee’s normal work hours when travel crosses state lines or requires an overnight stay.
• Regular Rate of Pay: The employee’s standard hourly wage, inclusive of all non-discretionary pay, used to calculate overtime.
• Idle Travel Time: Time when the employee is a passenger and is relieved of all work duties.
• Span of Normal Work Hours: The start-to-end times of the employee’s regular scheduled shift, used to determine compensable travel on travel days.

Section 4 — General Principles (Federal FLSA)

All travel pay practices are grounded in the federal Portal-to-Portal Act (29 U.S.C. § 254) and the FLSA. The following rules apply in all states unless a state-specific provision in Section 11 requires a higher standard.

4.1 Ordinary Home-to-Work Commute

Normal commuting from home to the regular worksite is not compensable, even when using a company vehicle.

4.2 Travel During the Workday

Time traveling between work sites or to a customer location during the normal workday is compensable and counts as hours worked.

4.3 Overnight Travel Away from Home

When an employee travels away from home overnight:

• Travel time during normal work hours is compensable on all days, including weekends.
• Travel outside normal work hours is generally not compensable.
• If travel cuts across a day when the employee would normally work, those hours are compensable even if the employee is a passenger.

4.4 One-Day Out-of-Town Travel (No Overnight)

All travel time beyond the employee’s normal home-to-work commute distance is compensable for single-day out-of-town trips.

Section 5 — Compensable Travel Time — Day Trips

For day trips (no overnight stay), compensable travel time begins when the employee departs from their home or regular worksite — whichever is later — and ends upon return.

• Driving time in a personal or company vehicle to a non-regular work site is compensable.
• Required waiting time at an airport or transit hub is compensable.
• Meal breaks of 30+ uninterrupted minutes are not compensable.
• Any work performed while traveling (calls, emails) is always compensable regardless of transport mode.

Section 6 — Compensable Travel Time — Overnight Trips

For overnight travel, the Company compensates employees for travel time that falls within their span of normal working hours, including on days they would not normally work.

6.1 Determining Normal Work Hours

For employees with variable schedules, the Company uses the average start/end time over the prior four-week period to determine the span of normal work hours.

6.2 Passenger Time

An employee who is a passenger is not required to work. However, if that travel falls within their normal span of work hours, it remains compensable.

6.3 Driving Time

All time spent as the designated driver during overnight travel is compensable regardless of whether it falls within normal work hours, as the employee is actively performing work duties.

Section 7 — Non-Compensable Travel Time

The following are generally not compensable:

• Normal home-to-work commute.
• Meal periods of 30+ uninterrupted minutes with no work duties.
• Sleep time on overnight trips (up to 8 hours may be excluded when sleeping accommodations are provided).
• Passenger time outside normal work hours when no work is being performed.
• Personal detours taken for the employee’s own purposes.

Section 8 — Rate of Pay for Travel Time

Compensable travel time is paid at the employee’s regular rate of pay unless a separate travel rate has been agreed upon in writing prior to the trip and that rate meets or exceeds the applicable minimum wage.

• Any separate travel rate must be established in a written agreement signed before travel begins.
• The rate must meet or exceed the applicable state minimum wage (see Section 11).
• Overtime must still be calculated on the weighted-average regular rate across all work in the workweek.

Section 9 — Overtime During Travel

Compensable travel time counts toward total hours worked for overtime purposes.

9.1 Federal Overtime (All States)

Employees earn overtime at 1.5× their regular rate for hours worked beyond 40 in a workweek.

9.2 Nevada Daily Overtime

Employees whose regular rate is less than $18.00 per hour earn overtime at 1.5× their regular rate for hours worked beyond 8 in a single workday. This applies to compensable travel hours. See Section 11.2.

9.3 4-10 Schedule Exception (Nevada Only)

By mutual written agreement, a Nevada employee on a four-day, ten-hour schedule is not subject to daily overtime. The agreement must be voluntary. Weekly overtime still applies if total hours exceed 40.

Section 10 — Expense Reimbursement

Travel pay (compensation for time) is separate from expense reimbursement (repayment of costs). Expenses such as airfare, hotels, meals, and mileage are governed by the Company’s separate Expense Reimbursement Policy. Reimbursed expenses are not included in the regular rate of pay and do not affect overtime calculations.

Section 11 — State-Specific Requirements

Where state law provides a higher standard than federal law, the higher standard applies. Values highlighted in gold are variable figures verified annually (January 1, and July 1 for Nevada).

11.1 Utah (UT)

Utah does not have its own overtime or travel pay law beyond the FLSA. Federal rules apply in full.

Utah — Key Variables
Minimum Wage	$7.25/hr (federal rate applies)
Daily Overtime	None — FLSA weekly OT only (>40 hrs/week)
Tip Credit	Permitted per federal rules
Record Retention	2 years (FLSA minimum)
Written Travel Rate	Required in writing if a separate travel rate is used

11.2 Nevada (NV)

Nevada has significant additional requirements. All employees are subject to both daily and weekly overtime thresholds. Nevada does not permit a tip credit.

Nevada — Key Variables (verify each July 1)
Minimum Wage	$12.00/hr — flat statewide rate; no two-tier system
Daily OT Threshold	Applies to employees earning < $18.00/hr (= 1.5× min. wage)
Daily OT Rule	Hours worked > 8 in a single workday = OT at 1.5× regular rate
Weekly OT	Hours worked > 40 in a workweek = OT at 1.5× regular rate
4-10 Exception	Written mutual agreement required; weekly OT still applies
Tip Credit	NOT permitted — full minimum wage must be paid regardless of tips
Donning/Doffing	Time putting on/removing required uniforms at the work site is compensable
Record Retention	2 years (FLSA minimum)
SB 8 Sunset	Nevada’s Portal-to-Portal alignment sunsets October 2029 — review policy at that time

Nevada note: A travel day with more than 8 compensable hours triggers daily OT for employees below the $18.00/hr threshold, in addition to weekly OT calculations.

11.3 New Mexico (NM)

New Mexico follows the FLSA for travel pay but has a higher statewide minimum wage and two local jurisdictions with minimums that exceed the state rate.

New Mexico — Key Variables (verify each January 1)
State Minimum Wage	$12.00/hr statewide
Santa Fe City Min. Wage	$15.40/hr (Santa Fe city limits)
Albuquerque Min. Wage	$12.00/hr (state rate currently prevails over city rate)
Tipped Employees — ABQ	$7.20/hr cash minimum (as of Jan 1, 2026)
Multi-Jurisdiction Rule	Pay the higher applicable rate for each hour worked in each city
Daily Overtime	None — FLSA weekly OT only (>40 hrs/week)
Record Retention	3 years (exceeds FLSA minimum)

New Mexico note: When an employee works in both Santa Fe and a non-Santa Fe location in the same workweek, the correct minimum wage rate must be applied for each set of hours. Payroll records must reflect work location to support the 3-year retention requirement.

11.4 Arizona (AZ)

Arizona’s minimum wage adjusts annually on January 1 based on the Consumer Price Index (CPI). Employers must post the current rate notice at each worksite.

Arizona — Key Variables (verify each January 1)
Statewide Minimum Wage	$15.15/hr effective January 1, 2026 (CPI-adjusted annually)
Flagstaff Minimum Wage	$18.35/hr effective January 1, 2026
Tucson Minimum Wage	$15.45/hr effective January 1, 2026
Tipped Employees	$12.15/hr cash wage + up to $3.00 tip credit = $15.15/hr total
Daily Overtime	None — FLSA weekly OT only (>40 hrs/week)
Record Retention	4 years (exceeds FLSA minimum)
Posting Requirement	Current minimum wage notice must be posted at each worksite
Annual Rate Check	Verify updated rate at azica.gov each January 1

Arizona note: Because the minimum wage adjusts annually, written travel rate agreements must be reviewed and updated each January 1. Payroll records must be retained for 4 years.

Section 12 — State Variables Summary

The table below summarizes key state-specific variables for quick reference. Gold-shaded cells change periodically and must be verified annually.

Variable	Utah	Nevada	New Mexico	Arizona
State Min. Wage	$7.25 (federal)	$12.00/hr	$12.00/hr	$15.15/hr
Local Min. Wage	None	None	Santa Fe $15.40; ABQ $12.00	Flagstaff $18.35; Tucson $15.45
Daily OT Rule	No (FLSA only)	>8 hrs/day if pay < $18/hr	No (FLSA only)	No (FLSA only)
Weekly OT	40 hrs	40 hrs	40 hrs	40 hrs
Tip Credit	Yes (federal)	NOT permitted	Yes	Yes ($3.00 credit)
Record Retention	2 years	2 years	3 years	4 years
Special Notes	None	SB 8 sunsets Oct 2029	Multi-city rate per location	CPI-adjusted Jan 1 annually

Gold-shaded cells indicate values that change periodically. Verify all gold values at the start of each calendar year (and each July 1 for Nevada minimum wage / OT threshold).

Section 13 — Timekeeping and Recordkeeping

Accurate records of all compensable travel time are required. Employees must:

• Record all travel time on their timesheet on the same day travel occurs.
• Indicate the type of travel (e.g., “day trip,” “overnight — passenger,” “overnight — driver”) in the notes field.
• Notify their supervisor before the trip if there is any ambiguity about compensability.

Managers must review and approve all travel-related time entries. The Company retains payroll records for a minimum of 4 years across all states for consistency (Arizona’s requirement), unless otherwise directed by HR.

Section 14 — Questions and Reporting

Employees with questions about travel pay should contact HR before the trip whenever possible.

HR Contact: [HR NAME]

HR Email: [HR EMAIL]

HR Phone: [HR PHONE]

Any employee who believes their travel time was incorrectly recorded or compensated should report the concern to HR within 5 business days of the pay date. The Company will investigate all such reports promptly and correct any errors in the next available pay cycle.

Section 15 — Policy Review and Updates

This policy will be reviewed no less than annually, and whenever a relevant federal or state law changes. Minimum wage rates and overtime thresholds must be verified each January 1 (and each July 1 for Nevada). HR is responsible for maintaining and distributing updated versions.

Revision date footer should read: Rev. [DATE] when published.

Employee Acknowledgment

By signing below, I acknowledge that I have received, read, and understood the ABC Great Beginnings Travel Pay Policy for Hourly Employees. I understand my obligations regarding timekeeping for travel, my right to compensation for eligible travel time, and that I should contact HR with any questions before or after a business trip.

Employee Printed Name	Job Title / Department
Employee Signature	Date
Work State (UT / NV / NM / AZ)	Manager Signature (acknowledging receipt)

A signed copy must be returned to HR and placed in the employee’s personnel file.