Could Truck Drivers Finally Receive Over-Time Pay?
The federal Fair Labor Standards Act (FLSA) of 1938 sets the rules requiring overtime pay for many employees who work more than 40 hours per week. But in the almost 90 years since its passage, the FLSA has prevented most truck drivers from receiving overtime pay. This could finally change however, as lawmakers in both the House of Representatives and Senate have recently introduced legislation, called the Guaranteeing Overtime for Truckers Act, to guarantee that truckers earn time-and-a-half pay for hours worked over 40 in a week. Here’s an overview of the situation and the proposed legislation that has generated significant debate.
An Overview of the FLSA and the Proposed Guaranteeing Overtime for Truckers Act
Why Truckers are Currently Exempt from Overtime
Enacted in 1938, the FLSA set the framework for how most workers are paid in the United States, establishing foundational laws such as requirements for minimum wage and overtime pay. However, the FLSA includes a specific exemption for truckers and many other motor carrier employees. The exemption means most truckers don’t get the extra pay that nearly every other worker receives for working more than 40 hours in a week.
Within the trucking industry, there is debate about whether the exemption is an outdated relic of a bygone era, or whether it remains necessary to support the efficient movement of goods.
The Case for Overtime Pay
Supporters of the proposed legislation argue that overtime is a matter of basic fairness, and that drivers should not be expected to work excessively long hours without fair compensation in a high-stress and dangerous job like trucking. Delays due to shippers, receivers, weather, and traffic are common, which force truckers to work unplanned hours for which they don’t receive overtime pay.
The International Brotherhood of Teamsters, one of the bill’s strongest supporters, believes pay for overtime would also help improve truck driver retention. Turnover rates in the industry are extremely high. Paying overtime, they argue, would encourage drivers to stay in their jobs and help ease consistent driver shortages.
Safety is another major reason cited as to why drivers should receive overtime pay. Supporters believe it will give trucking companies an incentive to lessen the number of hours their employees spend driving, leading to drivers who are better rested and ultimately making the roads safer for everyone.
The Trucking Industry’s Stance
The American Trucking Associations (ATA) fiercely opposes the change. They argue that this bill would actually reduce wages for drivers and have far-reaching negative consequences for the U.S. supply chain.
The ATA believes that most trucking companies determine salaries based on factors such as the miles driven, the type of freight, and total hours a driver is “on duty” (whether driving or not.) The ATA claims it would be impractical and expensive for trucking companies to adjust operations to incorporate pay for overtime hours into their established systems.
The ATA argues that companies would need to reduce the workload given to drivers, or shift schedules in ways that decrease total hours on the clock. This could lead to slower freight transport, disrupting the nation’s supply chain and hurting consumers.
The trucking industry has effectively lobbied against similar bills in the past. The current political makeup of Congress suggests the proposal faces an uphill battle. However, if the Guaranteeing Overtime for Truckers Act does gain traction, it would have far-reaching implications for drivers, trucking companies, and consumers alike.
How Would Overtime Work for Truckers?
One of the biggest points of contention is how exactly extra pay for overtime would work, given that drivers can spend significant periods of time waiting to pick up or deliver loads. Currently, most long-haul drivers are not paid on a simple hourly basis. Rather, factors such as the distance traveled, the type of freight, and total “on-duty” time – which can include driving as well as rest and wait periods – often play a role in how their pay is calculated.
It’s unclear exactly how overtime rules would be implemented for truckers if the FLSA exemption were eliminated. One possibility is that existing pay models would be adapted. For example, companies could lower drivers’ base pay, with overtime kicking in after 40 hours of work. However, some proponents suggest that an entirely new wage system focused on a traditional hourly rate may be better.
Complications for Trucking Companies
The ATA maintains that implementing new pay models would be an administrative nightmare. They’d need to invest heavily in new timekeeping and payroll systems, among other administrative hurdles. These changes would be complicated and expensive, with the biggest cost burdens falling heavily on smaller trucking companies that often operate on thin margins.
Additionally, trucking representatives argue that adding overtime pay would make schedules less flexible. It would likely force many companies to alter how they schedule and route drivers to avoid paying time-and-a-half whenever possible. These changes could impact how quickly freight is moved, potentially causing delays and even raising prices for consumers on everyday items that depend on trucks.
Complications for Truckers
On the surface, it may seem that this legislation would be universally supported by truckers. However, some truck drivers are concerned about the potential negative effects. Truckers, particularly those paid on a “per-mile” basis, worry that companies will respond to overtime requirements by reducing the number of miles they can drive. This could lead to less total pay at the end of the week, even with overtime factoring in.
The Unique Situation of Owner-Operators
A change in the law about pay for overtime would not automatically extend to most owner-operators who own their trucks and often contract with carriers to move freight. As business owners, they are not covered by the Fair Labor Standards Act and would therefore be ineligible for overtime under the proposed legislation.
However, the ATA and other trucking organizations argue that the disruption of overtime rules could still harm owner-operators. They claim that changes in how carriers schedule and pay company drivers would likely impact freight rates for all truck drivers, regardless of their employment status.
The Road Ahead
The future of the Guaranteeing Overtime for Truckers Act remains uncertain, with strong arguments on both sides of the issue. The debate boils down to much more than simply whether truckers should be paid extra when they work more hours. At its core are fundamental questions about how the industry is structured and how best to address the challenges facing both drivers and trucking companies.
What Can You Do?
If you have strong feelings about this potential change, it’s well worth contacting your elected representatives to express your views. Also, recognize and show appreciation for the hard work that truckers do. Next time you’re on the road, remember that the truck beside you is moving vital goods that keep our economy going. Be patient, give them space, and help keep them safe every day.
Contact Us for Help Now
If you’re a truck driver and have questions about how current or proposed pay laws could affect you, contact Katz Melinger, PLLC today for advice and potential representation.