Magazine article HRMagazine

Company Exempt from Overtime Claims of Drivers

Magazine article HRMagazine

Company Exempt from Overtime Claims of Drivers

Article excerpt

Resch v. Krapf's Coaches Inc., 3rd Cir., No. 14-3679

A motor coach company that required its drivers to meet the federal Motor Carrier Act (MCA) safety requirements and that randomly distributed interstate routes did not have to pay overtime to its drivers, the 3rd U.S. Circuit Court of Appeals ruled.

Krapf's Coaches Inc. maintains a fleet of buses and shuttles that transport passengers on set routes within and outside its home state of Pennsylvania. Between 2009 and 2012, the majority of its trips remained in Pennsylvania, although a portion of its revenue-between 1 percent and 9.7 percent-came from interstate trips.

One of Krapf's drivers, Joseph Resch, brought a collective action suit under the Fair Labor Standards Act (FLSA) to recover unpaid overtime compensation for other drivers and himself.

Resch claimed that many Krapf drivers seldom or never drove interstate routes, and thus Krapf could not claim that the MCA exemption applied.

The Federal Motor Carrier Safety Administration regulates employees who perform activities that affect the safety of interstate transportation.

Resch claimed that most Krapf drivers did not qualify as workers whose activities affect the safety of interstate transportation because only 1. …

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