L&I's new policy stems from the Washington State Supreme Court's Brinks decision of 2007. The Court ruled that a home security firm which allowed technicians to drive to and from their homes in company trucks was required to pay the employees for their drive time. According to the Court, the employees were "on duty" at the employer's "premises" or "workplace" while they were driving to and from their residences. As a result, this time constituted "hours worked" under the Washington Minimum Wage Act.

The Brinks decision created confusion regarding the circumstances under which commute time in company vehicles is compensable. AGC sought clarification through legislation last year. That effort was defeated and AGC has since been working to secure a Department rule on the matter.

The policy is intended as a guide to interpretation and application of the court decision; it does not in and of itself constitute a Department rule.

"The Department's policy is an important first step," said Rick Slunaker, AGC's Director of Government Affairs. "It's valuable guidance for employers who want to keep providing employees with the perk of a company-owned vehicle."

AGC had urged L&I to provide more guidance to employers and will continue to work with L&I on the development of more formal rules and will consider a legislative solution in 2009.

L&I had originally intended for the policy to take effect Aug. 8. Labor groups sought and received a postponement. The policy took effect Sept. 2.

The policy describes that commute time is compensable if it is "hours worked". It then lays out elements of the definition of "hours worked" as follows:

1. An employee is authorized or required by the employer,
2. to be on duty,
3. on the employer's premises or at a prescribed workplace.

All three of those elements must be satisfied. The policy fleshes out the meaning of "on duty" and "employer's premises or prescribed work place."