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FOR IMMEDIATE RELEASE
Patrick O'Connor
Kent & O'Connor, Incorp.
1990 M St., NW
Suite 340
Washington, DC 20036
202.223.6222
fax 202.785.0687
There is a very important matter pending in the Congress which you may want to bring to the attention of your employer. Your company may have to alter how it compensates its drivers of cars, light trucks and vans.
Background: In 2005, Congress passed a major highway bill, the Safe, Accountable, Flexible and Efficient Transportation Equity Act: A Legacy for Users. The bill includes a section that eliminated DOT’s authority to regulate vehicles and drivers of vehicles weighing less that 10,001 pound (GVW). Although never applied, DOT had always had the authority to regulate cars, vans, and light trucks. The intent behind the legislative change was to remove an authority that DOT rarely, if ever, used.
Result: The result of this new law inadvertently altered the scope of the “motor carrier exemption” contained in the Fair Labor Standards Act (FLSA), which generally requires time-and-a-half pay for work in excess of 40 hours per week. The overtime requirement, however, does not apply to drivers of vehicles regulated by DOT, including cars, vans and light trucks.
As a result, the Department of Labor Solicitor’s Office has concluded that drivers who operate a commercial motor vehicle under 10,001 pounds, including automobiles, may now be entitled to overtime pay under the FLSA. Service technicians, for example, who are paid salary and commission, are now considered hourly workers eligible for over-time pay. This new law requires contractual agreements to be modified to include over-time pay.
Already, a NAFA Member advises that a corporate analysis of shifting from the current business model from salaried/commission compensation to hourly/overtime-eligible service technicians will create a negative financial cost and require a reorganization of a current business division.
Status: NAFA is working with others in Washington, DCto restore the “motor carrier” exemption to the Fair Labor Standards Act. The Senate has passed a bill that restores the exemption. The bill is now pending in the House, where passage is dependent on the support of the leadership from the Subcommittee on Transportation Appropriations.
What You Can Do: Time is running out. Key members of Congress need to be contacted very soon. Please consider:
1. Bringing this to the attention of your company’s government affairs officials (if they have any questions, they can contact NAFA’s U.S. Legislative Counsel Pat O’Connor at 202-223-6222).
2. Using the sample letter below, send an email or fax to Rep. Joe Knollenberg.
Draft Letter to the Honorable Joe Knollenberg
A letter to Representative Joe Knollenberg from your company is recommended. The Congressman chairs the House Appropriations Subcommittee on Transportation. His support for the provision in the Senate FY 2007 transportation appropriations bill is extremely important.
Please fax your letter to Rep. Knollenberg at 202-225-3509. [Note: Security measures in place for the U.S. Capitol complex will delay delivery of regular mail for several weeks.]
Please fax a copy of your letter to NAFA’s U.S. Legislative Counsel Pat O’Connor at 202-785-0687.
Honorable Joe Knollenberg
Chairman
Subcommittee on Transportation, Treasury
and Housing and Urban Development, Judiciary, District of Columbia
2358 Rayburn House Office Building
Washington DC 20515-6027
Dear Chairman Knollenberg:
I am writing to express [insert your company’s name] strong support for the provision in the Senate version of the FY ‘07 transportation appropriations bill that would reinstate the definition of “commercial motor vehicle” and thus restore the “motor carrier exemption” under the Fair Labor Standards Act.
As you know, this important protection was inadvertently repealed by a provision in last year’s highway bill (SAFETEA-LU). As a result of this unintended action, companies such as ours are now exposed to millions of dollars in lawsuits for overtime pay dating back to last August. Moreover, the Department of Transportation, which also supports a return to the pre- highway bill status quo, has said that without the needed change, it will be seriously impeded in carrying out its safety mission because it will no longer have authority to regulate certain commercial vehicles.
For these reasons, I urge you to support the Senate provision to restore the definition of “commercial motor vehicle” to what it was prior to the passage of SAFETEA-LU.
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