Should Your Employer Compensate You for Your Commute?
Alex Healey
· 4 min read
Commuting sucks.
This isn’t news to anyone, but a
study by Jerry
has revealed just how much it sucks, by calculating the financial cost of driving to work.Not only do we pay thousands of dollars in additional car insurance, vehicle maintenance, and gas, but we aren’t paid for our time either. When it comes to the financial impact of commuting, employers typically get away scot-free.
Read on to learn why there is growing pressure on companies to reimburse their employees for the time spent getting to the office, and why a hybrid working model might be the best solution.
How much do Americans spend on commuting to work?
By analyzing internal data, and combining car insurance rates, distance traveled, gas prices, and the cost of maintaining a vehicle, Jerry’s researchers have calculated how much it costs to commute to work in every state.
The results aren’t pretty. The average American driver spends $4,588.04 getting to and from work every year, and depending on where you live, you could be paying substantially more.
The most expensive state in the country is New York, where motorists pay $7,200.98 on driving to work. In the South, Georgians pay the most, coughing up $5,158.24 each year.
In the West, Nevada is the most expensive state for commuting, with drivers spending an average of $5,145.83 each year, and in the Midwest, Michigan tops the list, with drivers paying $5,128.43 each year.
These numbers are outrageous, especially as a percentage of income. In Georgia, for example, the average commute cost is 15% of the average salary!
If employers were required to compensate employees for their gas, in addition to time spent on the road at the state’s minimum wage, driving to work would be far more affordable.
New Yorkers would spend $1,724.50 per year (saving $5,476.48), Georgians would spend $1,819.42 per year (saving $3,338.82), Michiganders would spend $1,689.70 per year (saving $3,438.73), and Nevadans would spend $1,390.90 per year (saving $3,754.63).
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Should employers be on the hook for commuter costs?
MORE: California Cities Have the Most Expensive Commutes as Offices Reopen
While it might seem radical to suggest employers pay their workers for time spent commuting, there is mounting pressure to make it happen.
This argument presumes that employees have control over where they live and work, but due to the increasing costs associated with living in major urban areas, more and more workers are being forced to move far away.
Many employees cannot afford to live close to work, and they can’t change jobs, because there is no work where they live!
Companies also argue that commute time is free time. Staff are not required to work during travel, and are thus undeserving of remuneration.
But commuting is not really free time at all, especially for people who drive to work. You cannot spend this time shopping, or seeing family, or pursuing other personal interests.
Also, many commuters do spend their travel time working, either using a hands free set to join a work-related call, or for those who don’t drive, replying to emails on their smartphone.
Few employers discourage this and they are getting hours and hours of free labor as a result.
Medium goes on to describe a ruling by the European Court of Justice, forcing some employers to recognize that commuting time is working time.
There is increasing pressure to expand this ruling, and for U.S. workplaces to follow suit.
A hybrid compromise
While it is unlikely that American employers will start paying workers for their commute any time soon, a hybrid working environment may be a great compromise.
The hybrid model consists of people working from home a few days of the week, and in the office for the remainder.
With a hybrid model, employees have the flexibility of deciding when to work based on their schedules at home. For example, parents can take time out of the day to pick the kids up at school, and then catch up on work in the evening.
While some employers are worried about this, claiming it will hurt the bottom line,
Forbes
shares research showing that remote workers tend to be more productive than those in the office.It also has the added benefit of saving employees money. Not only can families save on things like after school care, but the costs of commuting to work will be dramatically reduced too.
