Interstate Motor Carriers and Overtime
Posted on 05-Jul-08 by The Timekeeper
Generally speaking, employers who transport goods in interstate commerce are exempt from paying employees overtime, thanks to something called the 13(b)(1) exemption, or “motor carrier” exemption. On August 10, 2005, President Bush signed into law the Safe Accountable Flexible Efficient Transportation Equity Act — A Legacy for Users, or “SAFETEA-LU” (try saying that five times fast).
Problem was, one of the things SAFETEA-LU did was change the definition of a “motor carrier” to eliminate this exemption for any employer operating a vehicle weighing less than 10,000 pounds. Unfortunately, neither the Department of Labor nor any other government department or publication alerted employers to this changed definition, which potentially left them vulnerable to wage and hour claims.
Predictably, a whole pile of lawsuits were filed alleging failure to pay overtime. And courts have been pretty consistent in finding that employers operating vehicles of less than 10,000 pounds were no longer exempt from overtime rules as of August 10, 2005.
Fast forward three years. On June 6, 2008, President Bush signed into law the SAFETEA-LU Technical Corrections Act of 2008, which includes relief for employers affected by the original act. Specifically, among other things the Technical Corrections Act returned the definition of “motor carrier” to its original terms prior the passage of SAFETEA-LU — basically treating things as though the change in definition had never happened.
If you have questions about potential liability under SAFETEA-LU or you’re currently involved in litigation related to the motor carrier exemption, you should consult with your attorney right away. As of June 6, the legal landscape has changed.
Hat tip to Kevin V. Maltby, Esquire for bringing this to my attention!
Related Posts
No Comments
No comments yet.
Comments RSS TrackBack Identifier URI
Leave a comment
