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ARTICLE · 14 MAY 2015

3rd Circ. Says Interstate Routes Exempt Drivers From OT

Fox Rothschild LLP
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Randall Schauer and Jennifer Hanlin were featured in the Law360 article, "3rd Circ. Says Interstate Routes Exempt Drivers From OT."

United StatesEmployment and HR
Law 360
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Randall Schauer and Jennifer Hanlin were featured in the Law360 article, "3rd Circ. Says Interstate Routes Exempt Drivers From OT." Full text can be found in the May 12, 2015, issue, but a synopsis is noted below.

The Third Circuit recently ruled that drivers who had to drive past state lines for Krapf's Coaches Inc. (KCI) were exempt from overtime pay due to the federal Motor Carriers Act (MCA).

Since it was proven that the drivers had reason to believe that they would likely have to drive across state lines, the MCA exempted them from the right to the overtime pay delineated in the Fair Labor Standards Act.

On average, KCI only generated at most 10 percent of their total revenue from interstate commerce. Notably, KCI followed all federal regulations in regards to their drivers.

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