Revised: September 2024
Independent Contractor Travel Policy
ALL INDEPENDENT CONTRACTORS MUST SUBMIT PHYSICAL COPIES OF TRAVEL EXPENSES.
I. Purpose
This Independent Contractor Travel Policy (“Policy”) sets forth guidelines and procedures for domestic and international travel and reimbursement of travel expenses for Independent Contractors. An “Independent Contractor” or “Contractor” is defined as all consultants, vendors, suppliers, service providers, contractors and agents.
II. Policy
This Policy applies to Independent Contractors contracting with Laboratory Corporation of America Holdings and its subsidiaries, including, without limitation, Labcorp Diagnostics, Labcorp Early Development Laboratories Inc. and Labcorp Central Laboratory Services Inc. operating segments (collectively, “Labcorp”).
If an agreement between Labcorp and Contractor provides for reimbursement of approved travel expenses, then Labcorp will only reimburse Contractor for travel expenses that are reasonable and necessary, are for a legitimate business purpose and are documented in conformity with applicable law, reasonable business practices and this Policy.
All expenses must be reported on the form designated in the applicable Statement of Work, or the Contractor Reimbursement Expense Report template attached below if no form is designated in such Statement of Work. This template may be updated or modified by Labcorp at any time and for any reason in its sole discretion. Hotel expenses must be categorized according to the following: room charge, room service (all meal types), telephone (including internet), parking, laundry and miscellaneous. All such expenses must be submitted electronically to the project manager identified in the applicable Statement of Work or the appropriate Labcorp management personnel, as applicable, and approved by such Labcorp project manager or management personnel prior to reimbursement. Expenses should be submitted for reimbursement no more than ten (10) business days after the end of the month in which they were incurred or as otherwise specified in a SOW.
Contractor is responsible for:
- Ensuring accuracy and completeness of all Reimbursement Expense Reports;
- Exercising proper and prudent judgment when incurring any travel or entertainment expenses;
- Paying costs incurred that are not reimbursable under this Policy;
- Ensuring that all Reimbursement Expense Reports are submitted on a timely basis;
- Providing and retaining proper documentation of the expenses and any approvals required in accordance with exceptions to this Policy;
- Use best efforts to meet business objectives without traveling (e.g., teleconferencing or videoconferencing may meet business needs and result in less cost and less time away from home and office);
- Taking proper precautions to ensure personal safety and to prevent theft or loss of Labcorp property (e.g., cash, tickets, and computers) by keeping valuable property close at hand or locked in a secure location; and
- Taking steps to remove or conceal personal data (e.g., credit card number on an invoice) before submitting supporting documents (e.g., crossing off credit card number on an invoice).
All business travel must comply with all applicable Labcorp policies, including, but not limited to, those found in Labcorp’s Code of Conduct and Ethics and the Labcorp Supplier Code of Conduct that both set forth standards of conduct required of Contractor. Expenses that are not in compliance shall not be reimbursed. By signing and submitting the Reimbursement Expense Report, Contractor represents that all expenses set forth on the Reports are in compliance with all applicable Labcorp policies. Any expenses found to be in violation of such policies shall not be reimbursable.
III. Contractor Travel
All business travel arrangements must (1) take advantage of the most economical fares, and (2) be preapproved by the project manager identified in the applicable Statement of Work or the appropriate Labcorp management personnel, as applicable, before travel arrangements are made.
Whenever possible, Contractor should consolidate appointments to reduce the number of required trips.
A. Preapproval
All travel arrangements must be preapproved by the project manager identified in the applicable Statement of Work or the appropriate Labcorp management personnel, as applicable, prior to completing the reservations. No travel arrangements are permitted without such prior approval. Any reservations made without such approval is a violation of this Policy and shall not be reimbursable.
Documentation should include the reason for travel, dates, estimated value, and any other relevant information. Any travel done without such approval is a violation of this Policy.
B. International Business Travel
“International Business Travel” is defined as any travel by Contractor on behalf of Labcorp that occurs outside of Contractor’s home designated country. International Business Travel may result in encounters with varied cultures, laws and customs which may expose Contractor and Labcorp to unique safety, security and legal considerations. Therefore, there are additional requirements to consider for International Business Travel. Contractor shall mitigate travel security risks and comply with local cultures and laws, and Contractor shall be responsible for providing instructions and information to its employees and contractors related to the following non-exhaustive list: Government Registrations, Visas and Passports, Safety and Security, Local Emergency Numbers, Government Assistance, Foreign Currency and Exchange, IT Equipment, and Kidnap and Extortion Risks.
C. International Business Practices
The business climate of some countries may invite certain practices that are prohibited by Labcorp policies. While Labcorp respects the varied customs of the international community, we also value the integrity of our corporate policies. Under no circumstances may Contractor disregard any Labcorp policy because of a local custom, practice or “way of doing business”. Contractor shall adhere to Labcorp’s Code of Conduct and Ethics and the Labcorp Supplier Code of Conduct at all times while conducting business on Labcorp’s behalf.
D. Government Officials
Contractor may come into contact with various government officials during International Business Travel, such as, customs and immigrations officials at the airport or border crossings or during discussions regarding potential business opportunities. As stated in the Labcorp Supplier Code of Conduct, bribery is prohibited.
Extra scrutiny under anti-corruption and anti-bribery laws is applied to any payment made to a government official, including entertainment of government officials. Facilitation payments are likewise prohibited by the Labcorp Supplier Code of Conduct. Additionally, local laws of a country may prohibit conduct that would otherwise be allowed under Labcorp policy, particularly in regards to government officials. Finally, be prepared prior to traveling internationally. For example, having appropriate visas could help to avoid potential customs and immigration issues.
IV. Contractor Travel Reimbursements
A. Air and Rail Travel
Contractors traveling on Labcorp business generally should utilize coach/economy class airline tickets or train accommodations. All travel arrangements must be made as prescribed in Labcorp’s policies and procedures in place at the time such travel arrangements are made. Contractor must retain all receipts for reimbursement purposes. Any unused tickets or portions thereof, and credit or refund slips must be forwarded to the Labcorp Corporate Travel Department.
Domestic (Within Home Country and/or Travel within Country of employment) Air Travel
- Coach - All Contractors
International (Between 2 or More Countries) Air Travel
- Business Class - Flights in excess of eight (8) hours, provided, however, that all expenses must comply with specific contractual requirements. Additionally, costs should be considered when selecting Business Class over Coach (you are allowed to select coach).
- Coach - Flights of eight (8) hours or less. NOTE: All times are measured using most direct flight times.
Domestic (Within Home Country) Rail Travel
- First Class - Trips in excess of two (2) hours in duration.
- Coach/Economy - Trips of two (2) hours or less.
International (Between 2 or More Countries) Rail Travel
- First Class - Trips in excess of two (2) hours in duration.
- Coach/Economy - Trips of two (2) hours or less.
Advance Purchase
Contractor should make every effort to book travel a minimum of fourteen (14) days in advance in order to take advantage of lowest fares possible.
“Creative ticketing” practices such as “back to back” and “hidden city” ticketing are prohibited.
Non-Refundable Fares
Use of penalty or non-refundable fares is required for all tickets, if available. In most instances non-refundable tickets can be reissued for a fee against another trip within one (1) year. However, the ticket must be cancelled prior to the departure date.
Electronic Ticketing
Use of electronic ticketing is the primary method of ticketing.
Lowest Logical Fare
Contractor must accept the lowest logical airfare. Contractor may not request a ticket with a higher cost in order to obtain an upgrade in class of service.
Frequent Flyer Program
Contractor may retain frequent flyer program benefits. In no event shall participation in these programs result in any incremental cost to Labcorp.
Baggage Fees
Baggage fees are reimbursable if reasonable and for the business purpose for up to two (2) bags for domestic and three (3) bags for international.
Use of Personal Aircraft
Contractor is strictly prohibited from piloting or being a passenger in a privately owned aircraft when traveling on behalf of Labcorp. If the Contractor violates this rule, Labcorp assumes no responsibility or liability for damages or expenses incurred.
B. Taxi and Ground Transportation
The cost of taxis or general carfare to and from places of business, hotels, railroads or airports is reimbursable. However, if scheduled bus or shuttle service is available, efficient and less expensive, Contractor is expected to use this service rather than incur the cost of a taxi.
Contractor is strongly encouraged to use its best judgment and consider personal safety when selecting transportation services.
Limousine/car service is discouraged unless it is more cost effective than other alternatives.
C. Car Rental
Car rental expenses are reimbursable where business circumstances require the use of a rental car. Contractor should rent intermediate cars from companies that provide a discount to Labcorp. Car rentals should be reserved as prescribed by the travel policies and procedures in place at the time the travel arrangements are made. Whenever possible, rental cars should be refueled prior to returning them to the rental agency to avoid additional and excessive fees.
When in an accident or situation involving theft of a rental car, Contractor should call the local police department and ensure that a police report is completed and will be available in order to complete the insurance process. If in the U.S., Contractor should also contact Fleet Response at 800-338-0619 to report the accident. If outside the U.S., Contractor should contact the car rental company. If the vehicle is still drivable, Contractor should return the car immediately and inform the rental car company of the accident. The car rental company should provide Contractor with a replacement car. If the car is towed from the scene of the accident, Contractor should contact the car rental company about the accident and ask for a replacement car. CONTRACTOR SHALL INDEMNIFY LABCORP FOR ANY EXPENSE, LOSS, INJURY OR DAMAGE WHICH MAY OCCUR DUE TO ANY ACCIDENT OR SITUATION INVOLVING THEFT OF A RENTAL CAR, AND CONTRACTOR HEREBY RELEASES AND DISCHARGES LABCORP FROM ANY SUCH EXPENSE, LOSS, INJURY OR DAMAGE OR ANY CLAIMS RELATED THERETO.
D. Personal Car Use, Parking and Tolls
U.S. only: Upon receiving approval from the project manager identified in the applicable Statement of Work or the appropriate Labcorp management personnel, as applicable, Contractor’s use of a personal car for business travel will be reimbursed at the Internal Revenue Standard Mileage Rate current at the time of such business travel.
Non-U.S.: Rates are set by Labcorp by reference to domestic legislation.
Such reimbursement is intended to include standard automobile insurance (liability and physical damage) as well as fuel, maintenance, normal wear and tear on the car. The cost of parking and tolls will also be reimbursed.
Travel in a personal car should not exceed 500 miles (800 Kilometers) round trip unless prior approval is obtained from the project manager identified in the applicable Statement of Work or the appropriate Labcorp management personnel, as applicable. Contractors who operate their personal vehicle on Labcorp business must have a current valid driver’s license and any insurance required by applicable laws, rules or regulations in place at the time of travel. Except for special reasons, mileage reimbursement for personal vehicle use for a trip will be limited to an amount not to exceed round trip coach class airfare for the same trip. While on Labcorp business, Contractor and occupants of Contractor’s car are required to wear seat belts.
Preferred long-term or economy airport parking facilities should always be used where available over short-term parking lots.
E. Lodging, Meals and Other Expenses
The cost of lodging incurred on overnight business trips is reimbursable. All hotel accommodations shall be made in accordance with travel and expense procedures in place at the time the travel arrangements are made. Contractor should pay for all charges at the time of checkout and should submit the actual hotel charges (room and tax only) for reimbursement. All original receipts must be kept for audit purposes.
Contractor is strongly encouraged to use its best judgment and consider personal safety. Use of Airbnb, VRBO, or other similar lodging services is not permitted.
Meals
The cost of meals is reimbursable when traveling on Labcorp business on an actual cost basis. Contractor should consider costs when determining what is a reasonable amount for a meal. An overnight stay is required for reimbursement of meals, unless otherwise approved by the project manager identified in the applicable Statement of Work or the appropriate Labcorp management personnel, as applicable. Guidelines are: (1) Domestic US - $13 breakfast, $15 lunch and $31 dinner and (2) International - $18 breakfast, $21 lunch and $36 dinner.
All receipts must include the name of the guests, their company name and the business purpose.
Meal reimbursement restrictions
When traveling and an overnight stay is involved, meal reimbursements are not allowed as follows:
- For breakfast if leaving home after 7:00 AM;
- For dinner if arriving home before 6:00 PM;
- For lunch if travel is not involved;
- If meals are included in the cost of a meeting or other function;
- If another person pays for the meal(s); and
- If meals, such as breakfast, are complimentary and included in the hotel room rate.
Gratuities
Reasonable tips are reimbursable as determined by service required and local custom and should be entered into the category in which they were experienced (such as a tip for taxi would be included with the taxi expense).
Upgrades to Travel
Personal coupons, incentives, rewards points or similar may be used to upgrade any travel accommodations. Additionally, Contractor may use personal funds to upgrade travel, but these are not reimbursable expenses.
V. Non-Reimbursable Expenses
The following are examples of expenses that are not reimbursable:
- Charitable Contributions;
- Expenses attributable to a spouse, or other family member, who may be accompanying Contractor on a business trip;
- Personal entertainment;
- Meals with Labcorp employees or third parties without a proper business purpose;
- Meals not related to travel for a proper business purpose;
- Flight insurance expense;
- Hotel “no show” charges where Contractor does not have a valid reason for failing to cancel the hotel reservation;
- Expenses incurred for use of a private aircraft;
- Movie rentals or in-flight movies;
- Personal care expenses such as barber, hairdressers, etc.;
- Personal reading materials;
- Miscellaneous expenses not supported by a receipt or approved by the department manager;
- Commuting expenses between Contractor’s residence and place of work;
- Credit card fees, except corporate sponsored card systems;
- Credit card late fees;
- Gifts;
- Travelers Checks;
- Baby-sitting;
- Kennel fees;
- Computer equipment, software or any other item normally considered to be an asset of Contractor;
- Office supplies;
- Lottery tickets;
- Mini-bar consumption;
- Late check out fees;
- Briefcases, luggage, or clothing;
- Loss of personal property, including luggage;
- Fine, traffic, parking or EZ-Pass violations;
- Adult entertainment;
- Health clubs;
- Air Line Club Memberships – Daily or Annual; and
- Home maintenance costs.
VI. Record Requirements
Contractor is required to keep records of all travel expenses incurred. Each expense item must be supported by the following data:
- Amount of money spent;
- Date and place (city, state, country, name of hotel, restaurant, etc.); and
- Business purpose of meeting and/or trip.
This information should be submitted with each request for reimbursement. If the required information and documentation is not submitted, reimbursement will not be approved.
Except as otherwise set forth below, original receipts are required and must be attached to the Labcorp Reimbursement Expense Report, in order to ensure reimbursement for all expense items. All original receipts must be retained by the requesting Contractor for audit purposes. Receipts are required for beverages and meals consumed separately but part of the same business meeting if the total expenditures for such items are $25 or more. All receipts should be scanned and electronically submitted to the project manager identified in the applicable Statement of Work or the appropriate Labcorp management personnel, as applicable, with the request for approval. Copies of all itineraries, travel approval documents and written exceptions to the policies must be submitted with the receipts. It is Contractor’s responsibility to make sure that all receipts are legible.
VII. Policy Exceptions
Except where otherwise specified above, Labcorp’s CEO, an Executive Vice President, or Senior Vice President must approve any exceptions to this Policy. In the event that an exception has been approved, documentation of such approval must be retained by Contractor and submitted by Contractor with the Reimbursement Expense Report.