Eleventh Circuit Ruling on Compensable Work Time

This technical report discusses the recent ruling by the U.S. Court of Appeals for the Eleventh Circuit regarding compensable work time under the Fair Labor Standards Act (FLSA) and Florida law. The case, Villarino v. Pacesetter Personnel Service Inc., involved claims from workers against a staffing agency concerning deductions for transportation costs and unpaid time spent traveling to worksites. The court affirmed summary judgment in favor of the staffing agency, clarifying that ordinary commute time and certain preliminary activities are not compensable. The report outlines the court's application of the Portal-to-Portal Act, which specifies that travel time is only compensable if it is integral to the employees' principal activities. It emphasizes the importance of employee choice in transportation methods and the distinction between optional benefits and employer obligations. The report concludes with guidance for employers on structuring transportation programs and compliance considerations to mitigate wage and hour risks.