The trucking industry, known for its complexity, finds itself entwined with various federal and state labor laws that dictate how drivers are compensated and treated.
One influential piece of federal legislation in this arena is the Fair Labor Standards Act (FLSA).
This month, I want to illuminate the nuances of the FLSA as they pertain to commercial truck drivers, addressing key questions and exploring the implications of state-specific regulations.
Can drivers legally be paid by the mile?
The short answer is yes, commercial truck drivers can be legally paid by the mile. The FLSA does not prohibit per-mile compensation.
Whether it is mileage pay, percentage pay or another form of payment, employers must ensure that the total workweek’s earnings do not fall below the federal minimum wage when divided by the number of hours worked over the course of the workweek.
What is the current minimum wage?
The current federal minimum wage is $7.25 an hour; however, 30 states, the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands all require higher minimum wages.
An article from Paycor discusses many increases at the state level that went into effect Jan. 1, 2025. In the event state and federal laws differ, generally the law that has a higher standard for the law’s intent prevails. In other words, if a person is employed in a state with a higher minimum wage than the federal requirement, the state minimum wage will prevail.
How do you calculate a driver’s hours worked?
For a driver considered to be an employee and keeping logs, time logged on-duty or driving is obviously considered work time.
However, in Montoya v. CRST Expedited Inc., 1st Cir., No. 21-1125 (Dec. 12, 2023), both the district court and the appellate court determined time in the sleeper berth in excess of eight hours in one day is compensable under FLSA. Off-duty time logged when a driver must be “on-call” may also be considered compensable. The linked document above references the Field Operations Handbook (FOH) saying, “consistent with the waiting time regulations at sections 785.12-.16, waiting or layover time will be considered noncompensable off-duty time if the driver ‘is completely relieved of all duties and responsibilities, is permitted to leave the truck or temporary station to go anywhere, knows in advance that work will not resume until a specified time, and the period of layover is of sufficient length to be used effectively for the employee’s own purposes.’ FOH 31b09(c)(1).”
Do drivers work over 40 hours weekly without overtime compensation?
Under the FLSA, most employees are entitled to overtime pay for hours worked over 40 in a workweek. However, commercial truck drivers often fall under exemptions to this rule due to The Motor Carrier Exemption.
The Motor Carrier Act exemption applies to drivers, mechanics and loaders whose duties affect the safety of operations in interstate commerce. This means that many drivers are not entitled to overtime pay under federal law. It’s important to note that this exemption does not apply universally and depends on specific job duties and employer classifications as seen in the fact sheet linked above.
Are candidates in driver orientation entitled to FLSA protections?
The language commonly used in trucking can be at odds with the language used by the Department of Labor (DOL). Depending on what’s included, “orientation” can be a bit of a misnomer.
The DOL typically considers “orientation” to happen post-hire, but many companies are, in fact, offering a “training” to vet candidates ahead of making an offer of employment — but calling it “orientation.” This can lead to some confusion between carriers, candidates and the DOL.
According to the DOL’s FLSA advisor, if this training meets the following requirements, it may be unpaid:
- The training, even though it includes actual operation of the facilities of the employer, is similar to that which would be given in a vocational school;
- The training is for the benefit of the trainees or students;
- The trainees or students do not displace regular employees, but work under close supervision;
- The employer that provides the training receives no immediate advantage from the activities of the trainees or students and, on occasion, his operations may even be impeded;
- The trainees or students are not necessarily entitled to a job at the conclusion of the training period; and
- The employer and the trainees or students understand that the trainees or students are not entitled to wages for the time spent in training.
Ensuring minimum wage compliance with pay deductions
When a company wants to deduct from a driver’s pay, it must ensure that such deductions do not reduce the driver’s earnings below the federal minimum wage.
Many employers offer bonuses, to be paid only if certain criteria are met, but there are occasions in which an employer may legally reduce regular wages — but again, those deductions must be made thoughtfully to avoid reducing weekly earnings below minimum wage.
Conclusion
Understanding the intricacies of the FLSA and related state laws is crucial for commercial truck drivers and their employers.
By ensuring compliance with these regulations, employers can foster fair labor practices while minimizing the risk of legal repercussions. Drivers, on the other hand, can better advocate for their rights and ensure they receive fair compensation for their labor.
Next month, I’ll go into more detail on deductions and current differences in state laws, which are always evolving.
Brad Klepper is a regular contributor to The Trucker, providing valuable information for drivers and motor carriers. He is also president of Interstate Trucker Ltd., a law firm entirely dedicated to legal defense of the nation’s commercial drivers. Brad is also president of Driver’s Legal Plan, which allows member drivers access to his firm’s services at discounted rates. For more information, contact him at (800) 333-DRIVE (3748) or interstatetrucker.com and driverslegalplan.com.
