In 2014, President Obama directed the Secretary of Labor to update the overtime regulations to reflect the original intent of the Fair Labor Standards Act. The new overtime law was expected to go into effect Dec. 1, 2016, but has since been blocked by U.S. District Judge Amos Mazzant III in Sherman, Texas.
New Overtime Law Overview
Main provisions to the existing law include updating and modernizing the standard salary level to $913/week ($47,476 annually for a full-time worker) from $455/week ($23,660 annually).
The law states that all full-time employees who make under $913/week will be entitled to overtime pay if they work more than 40 hours in a workweek.
Full-time employees who make at least $913/week and work more than 40 hours in a workweek may also be entitled to overtime pay, unless they fall into one of the following exemptions:
- Highly Compensated
- Outside Salesperson
- Computer Professional
- Select industry workers
A detailed list of the exemptions can be found here.
The Motor Carrier Overtime Exemption
Truck drivers, driver’s helpers, loaders, and mechanics are considered exempt from overtime pay. However, the following conditions must be met:
- Must have an annual salary of at least $47,476.
- Must be involved in interstate commerce or connect with an intrastate terminal (rail, air, water, or land) to continue an interstate journey.
This exemption does not apply to employees not engaged in “safety affecting activities.” Examples include dispatchers, office personnel, those who unload vehicles, or those who lead but are not responsible for the proper loading of the vehicle.
Additionally, employees of non-carriers such as commercial garages, firms engaged in the business of maintaining and repairing motor vehicle owned and operated by carriers, or firms engaged in the leasing and renting of motor vehicles to carriers are not exempt from the new overtime law.
More information about the motor carrier exemption can be found here.
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Truck Writers is not an expert on overtime law. For more information about the content of this post, please seek legal counsel.