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ARTICLE · 21 JULY 2008

Congress Enacts Corrections Act Affecting Pending FLSA Overtime Litigation

Squire, Sanders & Dempsey L.L.P.
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On June 6, 2008, President Bush signed into law the SAFETEA-LU Technical Corrections Act of 2008.

United StatesEmployment and HR
Jill Kirila
Jill Kirila

On June 6, 2008, President Bush signed into law the SAFETEA-LU Technical Corrections Act of 2008. This legislation should have a tremendous impact on pending litigation involving overtime disputes under the Fair Labor Standards Act (FLSA).

Under the FLSA, employees subject to the authority of the Secretary of Transportation are exempt from the act's overtime requirements. Pursuant to the Motor Carrier Act, the Secretary of Transportation has the authority to prescribe requirements for employees of a motor carrier or motor private carrier. Since certain employees of a motor carrier or motor private carrier are subject to this authority, they have traditionally been exempt from the overtime requirements of the FLSA. This exemption is commonly referred to as the motor carrier exemption.

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