Employers that Operate a Mixed Fleet of Vehicles May Lose the Motor Carrier Overtime Exemption

A federal district court in New York recently issued a decision in Hernandez v. Alpine Logistics, LLC, 2011 U.S. Dist. LEXIS 96708, that requires employers to pay overtime compensation to employees who are otherwise exempt from overtime under the Motor Carrier Act for any workweek in which the employee operates a vehicle weighing 10,000 pounds or less. It is important that employers with a mixed fleet of vehicles review their classification decisions to assess any potential exposure the Alpine Logistics decision may present.

Background

The plaintiffs in Hernandez were employed as delivery drivers responsible for picking up and delivering packages in the Rochester, New York area. They filed a class action/collective action against their employer for overtime based on the Fair Labor Standards Act (FLSA) and New York Labor Law. Alpine's permanent fleet consisted of 26 vehicles, two of which weighed more than 10,000 pounds and 24 of which weighed 10,000 pounds or less. All of Alpine's drivers could be called upon to drive any of the vehicles. The plaintiffs claimed they and other drivers were entitled to overtime because of an amendment to the FLSA that became effective on June 7, 2008. The defendant argued that the drivers were exempt from overtime under the Motor Carrier Act.

Background on the Motor Carrier Exemption

The Motor Carrier Act provides an exemption from the maximum hours/overtime provisions of the FLSA. The scope of the exemption is defined by the jurisdiction that the Secretary of Transportation can assert under the Motor Carrier Act. 29 U.S.C. § 213(b)(1). The Secretary of Transportation has the power to regulate the qualifications and hours of employees of "motor carriers" and "motor private carriers" engaged in activities directly affecting the safety of motor vehicles in interstate commerce. 49 U.S.C. §§ 31501, 31502(b); Baez v. Wells Fargo Armored Serv. Corp., 938 F.2d 180 (11th Cir. 1991).

On August 10, 2005, Congress passed the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU). Pub. L. No. 109-59, 199 Stat. 1144 (2005). Section 4142 of the SAFETEA-LU amended 49 U.S.C. section 13102 so that "motor carrier" and "motor private carrier" were defined as a person providing transportation with a "commercial motor vehicle." In turn, "commercial motor vehicle" was limited to a vehicle with a "gross vehicle weight rating or gross vehicle weight of at least 10,001 pounds, whichever is...