UpstateNYUPSer(Ret)
Well-Known Member
You aren't the only one.
Us too.
You aren't the only one.
DVJ: you and IWBF may both be right. I read somewhere in the wage and hour rules published by the U.S.Dept of Labor that says something to the effect that local pickup and delivery people can be paid a salary if they are limited to 40 hour work weeks. I'm not going to sit up all night looking for it but I will when I get a moment away from rehab and other tasks but I think both of you are right to a certain point. Christmas bores me that might be some good Christmas day reading.
If your claim to being involved in interstate commerce were correct, then everyone carrying freight would qualify because virtually everything, in whole or in part, crosses a State line sooner or later. And if the theory holds, a large number would also be considered international carriers, for the same illogical reason.This bad information in this thread is going to make my head explode.
First. The bit about firms engaged in leasing vehicles to motor carriers. That is for firms that are non-carriers. Companies that are not engaged in "safety affecting activities". Contractors do lease their vehicles to FedEx, but we operate them. We are not leasing companies.
Second. Any non-exempt employee can be paid salary. The amount of pay has to be agreed upon prior to employment. "I will hire you for $700 per week to work up to 70 hours." That is perfectly legal. It just has to be in writing and agreed to. The way OT would have to be paid is this: 700/70 = $10 effective hourly rate. The hours were already agreed on so the employer would owe OT on the additional 30 hours. 10/2=5, 5*30 = $150 of OT owed. Since the salary was agreed on the total hours are already paid. 700/45 = $15.56 effective wage. $15.56/2 = 7.78, 7.78*5 = $38.89 OT owed. Obviously for exempt employees, over 10k gvw, this doesn't matter.
The calculation is similar for piece rate. 800 stops at $1 per stop. 50 hour work week. 800/50 = 16. 16/2 = 8. 8*10 = $80 OT owed.
Third. We don't have to cross state lines, our volume does. We are part of the chain. That means we are involved in interstate commerce.
Sorry but you can't decide when ot starts. Your drivers are not exempt employees. If your employees drive a vehicle less than 10,000 lbs, you must pay them or after 40 hours in a work week. That's federal law.Let me repeat myself. Your drivers are not exempt employees.This bad information in this thread is going to make my head explode.
First. The bit about firms engaged in leasing vehicles to motor carriers. That is for firms that are non-carriers. Companies that are not engaged in "safety affecting activities". Contractors do lease their vehicles to FedEx, but we operate them. We are not leasing companies.
Second. Any non-exempt employee can be paid salary. The amount of pay has to be agreed upon prior to employment. "I will hire you for $700 per week to work up to 70 hours." That is perfectly legal. It just has to be in writing and agreed to. The way OT would have to be paid is this: 700/70 = $10 effective hourly rate. The hours were already agreed on so the employer would owe OT on the additional 30 hours. 10/2=5, 5*30 = $150 of OT owed. Since the salary was agreed on the total hours are already paid. 700/45 = $15.56 effective wage. $15.56/2 = 7.78, 7.78*5 = $38.89 OT owed. Obviously for exempt employees, over 10k gvw, this doesn't matter.
The calculation is similar for piece rate. 800 stops at $1 per stop. 50 hour work week. 800/50 = 16. 16/2 = 8. 8*10 = $80 OT owed.
Third. We don't have to cross state lines, our volume does. We are part of the chain. That means we are involved in interstate commerce.
Just because you repeat yourself doesn't make you correct.Sorry but you can't decide when ot starts. Your drivers are not exempt employees. If your employees drive a vehicle less than 10,000 lbs, you must pay them or after 40 hours in a work week. That's federal law.Let me repeat myself. Your drivers are not exempt employees.
And just because you won't listen doesn't make you correct.Just because you repeat yourself doesn't make you correct.
Google motor carrier exemptionAnd just because you won't listen doesn't make you correct.
Re-read what I said. I agree, but you misunderstood. OT is owed for anything over 40 hours for non-exempt employees. How you calculate pay is based on what is agreed upon between the employee and employer. Here's another example to clear it up. The employee/employer agree to a wage of 800 per week for up to 50 hours. If the employee works 60 hours in a week you would calculate it this way:Sorry but you can't decide when ot starts. Your drivers are not exempt employees. If your employees drive a vehicle less than 10,000 lbs, you must pay them or after 40 hours in a work week. That's federal law.Let me repeat myself. Your drivers are not exempt employees.
You obviously are ignorant to the definition of an exempt employee. You are merely trying to skirt federal law. Just because you pay by salary doesn't mean you can base it on 70 hours. The law is 40 hours for non exempt employees. If your drivers fall under the small vehicle exemption you must compensate them for ot beyond 40 hours. Even if they don't fall under the small vehicle exemption, they are NOT exempt from the other flsa provisions.Re-read what I said. I agree, but you misunderstood. OT is owed for anything over 40 hours for non-exempt employees. How you calculate pay is based on what is agreed upon between the employee and employer. Here's another example to clear it up. The employee/employer agree to a wage of 800 per week for up to 50 hours. If the employee works 60 hours in a week you would calculate it this way:
800/50 = $16 effective hourly wage.
(16/2)*10= $80 owed for those 50 hours
(16*1.5)*10= $240 owed for the 10 hours beyond what was agreed on for the wage.
Total pay would be $1120 for the week.
The salary is legal for non-exempt employees. I'm just showing how OT is calculated. As long as the salary is greater than minimum wage it is legal.
You trust x way too much, you will learn the hard wayIf X believes that paying drivers salary is contrary to the law, they would insist on hourly pay and proof of it.
They aren't about to knowingly leave that open considering the considerable exposure they've had to legal challenges by employees of contractors. That would be a 50 foot barn door wide open to FedEx cash.
Admittedly, I was in that camp for a while. After researching the topic I went back and self-audited. I keep my routes right around 40-45 hours per week so it wasn't too bad. Writing those checks for back pay wasn't fun.I would guess most are not following labor laws in most terminals across the country.
The motor carrier exemption does not preclude you from paying your employees for every minute worked. Many of you guys do not compensate your employees beyond 40 hours of work in their paid salary.BTW SPH many contractors are operating illegally. Those above 10k don't have to pay OT. The motor carrier exemption makes that legal. Those under 10k that don't pay OT are breaking labor laws. They should be terminated. I've had this same conversation with guys in my terminal that don't know the law.