How is deadhead pay calculated for ground transportation?

Deadhead pay in ground transportation refers to the compensation provided to drivers for the miles they travel without a passenger. The calculation method can vary, but one common approach is to determine it based on the total driving distance traveled in a given timeframe.

Calculating this by dividing the total driving distance by 60 is adopted from interpreting driving time in terms of hours, with the understanding that it reflects a standard rate of travel. This method aligns the calculation with the time it takes to cover a distance, aiming to ensure that drivers are fairly compensated for their non-revenue miles in a way that's consistent with hourly pay.

The other methods listed, such as fixed rates per mile, average driving time, or schedule comparison, do not directly align with standard calculations for deadhead pay. Fixed rates per mile might be more characteristic of general freight charges rather than specifically addressing the issue of deadhead miles. Average driving time would not inherently consider the distance aspect as integral to its calculation, and schedule comparison does not directly apply to determining compensation for non-revenue travel. Therefore, the first approach offers a straightforward, distance-based method that is commonly utilized for calculating deadhead pay.