Are you a trucking company? If so, you may be exposed to class action lawsuits for minimum wage, break time, and overtime violations.
Trucking companies are essential to our national economy and security. However, trucking companies often risk violating wage and hour laws (minimum wage, break time, and overtime) by doing “what everyone else does” without thinking it through.
The Fair Labor Standards Act (FLSA) is the federal law that governs the payment of wages for hours worked. Interstate truckers are generally exempt from overtime. Sometimes, even intrastate truckers can be exempt. But if the trucks are 10,000 lbs. or less, overtime is required.
Minimum wage is a bigger issue. There is no truck driver exception for minimum wage. It makes no difference how you pay drivers (hourly, by the mile, or by the task). Drivers’ pay must meet or exceed minimum wage on an hourly basis. Rarely (but sometimes), overtime can be an issue too.
Common industry errors include:
- Not counting all work hours as time worked – only productive, driving time – as hours worked, with drivers dropping below minimum wage when extra time is included.
- Not counting breaks under 20 minutes as hours worked. Any break under 20 minutes must be counted as hours worked, even if the driver does no work. It is a paid break by law.
- Misclassification as an independent contractor. Employees must be paid minimum wage; independent contractors do not. But the trucking industry is notorious for calling drivers...
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