U.S. Department of Labor Issues Guidance on Travel Pay and Proposes Experience‑Benchmarking Wage Rule

On July 22, 2026 the United States Department of Labor released two opinion letters interpreting the Fair Labor Standards Act (FLSA) for modern work arrangements. The letters clarify that travel time is generally unpaid when an employee commutes in a company‑provided vehicle, but becomes compensable if the employee performs substantive work—such as scheduling appointments or coordinating with coworkers—while driving to the first job site. Employers are advised to review state wage laws, which may provide broader protections, and to assess when employees begin performing job duties each day.

Separately, the Department of Labor issued a 2026 Notice of Proposed Rulemaking introducing “Experience Benchmarking” for H‑1B prevailing wage determinations. The proposal would set the required wage for a foreign worker at the median wage paid to U.S. workers in the same occupation, geographic area, education level, and age, rather than relying on employer‑provided job requirements. The rule aims to ensure that hiring foreign professionals does not depress wages for similarly qualified U.S. workers and would require employers to know the credentials of the foreign worker before filing the labor condition application.