The Car and Truck Fleet and Leasing Management Magazine

NAFA Exploring Fair Labor Standards Act Options

January 30, 2007

PRINCETON, N.J. – The National Association of Fleet Administrators (NAFA) is working with a coalition of interested parties to explore options in the 110th Congress to restore the Motor Carrier Exemption under the Fair Labor Standards Act (FLSA), according to the NAFA Fleet Focus e-mail newsletter. Due to an inadvertent drafting error in unrelated legislation enacted in 2005, this exemption was repealed leaving thousands of companies of all sizes subject to back payment of millions of dollars in overtime pay. This exposure applies to any company that uses vehicles weighing less than 10,001 lbs. in interstate commerce. Many businesses nationwide remain unaware that they may no longer be covered under the Motor Carrier exemption from the FLSA as a result of an unintended drafting error when Congress passed the Safe, Accountable, Flexible, and Efficient Transportation Equity Act – Legacy for Users (SAFETEA-LU) in 2005. Many companies have learned of this issue through the filing of individual and class action lawsuits demanding additional pay retroactive to the passage of SAFETEA-LU Aug. 10, 2005, according to Fleet Focus.
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