Eleventh Circuit Finds Drivers Who Drove Exclusively Within the State of Florida Were Still Subject to FLSA’s Motor Carrier Exemption
The U.S. Court of Appeals for the Eleventh Circuit recently held that truck drivers who delivered dairy products for a major dairy company’s subsidiary were exempt from overtime under the Fair Labor Standards Act (FLSA) even though they drove exclusively within the state of Florida and did not cross state lines. Under the FLSA’s motor carrier exemption, truck drivers who are subject to the jurisdiction of the U.S. Secretary of transportation and whose work affects the safe operation of the motor vehicle in interstate commerce are exempt from the statute’s overtime requirement. The “interstate commerce” element of this exemption was at issue in the case before the Eleventh Circuit case as plaintiffs argued that they picked up dairy products from their employer (the subsidiary) and delivered them to local customers but that they never left the state of Florida.
As the court noted, intrastate transport can be considered part of interstate commerce where “it is part of a continuous stream of interstate travel.” In this case, the subject products were processed at the dairy company’s facilities outside of Florida and, once delivered to the employer’s facilities, were quickly shipped out in their then present form to customers who had standing orders or other firm orders for the products. The court held that this was sufficient to satisfy the “continuous stream of interstate travel” question. The drivers were therefore not entitled to overtime under the FLSA.
The court did not discuss other elements which must be found in order for the motor carrier exemption to apply. Since the effective date of Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) in 2005, drivers of light-weight vehicles of under 10,000 pounds no longer fall under the Secretary of Transportation’s jurisdiction and thus are eligible for overtime under the FLSA. For the unwary employer, SAFETEA-LU can still be a trap.
For further information, please contact Linda K. Horras or your regular Hinshaw attorney.
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Hinshaw & Culbertson LLP’s transportation law group attorneys represent clients in trucking, bus, common carrier, aviation, freight forwarder, steamship and railroad businesses, including shippers’ agents and brokers, and insurers covering transportation companies. They advise and counsel on corporate, regulatory and transactional matters and provide representation in transportation-related disputes. Group members also actively participate in key industry organizations such as the Aviation Insurance Association and the American Trucking Association.
Frequent contributors to professional and industry journals on transportation issues, Hinshaw’s transportation law group attorneys have significant experience handling: coordination of accident investigations, employment practice claims, environmental claims, insurance coverage disputes, personal injury and death claims, property damage claims, and regulatory compliance.
This newsletter has been prepared by Hinshaw & Culbertson LLP to provide information on recent legal developments of interest to our readers. It is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. |