Distribution & Logistics

The FLSA provides an exemption from the overtime pay requirements, but not the minimum wage requirements, for employees of motor carriers under certain conditions.

Rules

• Employee must perform, in the ordinary course of his job, work which affects the safety or operation of the motor vehicle.
• The amount of safety related activities performed in a given week is irrelevant so long as such work falls within the continuing duties of the job in all work weeks

Definitions

• The “motor carrier” must meet the following requirements to avoid paying overtime:
• Either the business is:
  • A private carrier that hauls property; or
  • A contract carrier who hauls property or passengers but only if;
  • your work affects the safety of the operation; and,
  • you travel across state lines or connect with an intrastate terminal (rail, air, water, or land) during your travel
• Qualified Employees include:
  • a driver
  • a driver’s helper
  • a loader
  • a mechanic

There are other complicated matters that are dealt with by the Department of Transportation regarding motor carriers. Check with an attorney knowledgeable and experienced in this area.