ILNews

Appeals court reverses District Court on overtime pay

Back to TopCommentsE-mailPrintBookmark and Share

The 7th Circuit Court of Appeals has reversed a District Court’s finding that a tow truck driver was not entitled to overtime pay.

Bobby Johnson was a tow truck driver for Hix Wrecker for about four months, during which he worked 12-hour shifts. In the U.S. District Court, Southern District of Indiana, Johnson and Hix filed cross motions for summary judgment, with Hix claiming that Johnson was not entitled to overtime pay due to the motor carrier exemption to the Fair Labor Standards Act. Johnson argued he was not subject to the exemption and that the company’s owners and corporate secretary were individually liable for unpaid overtime wages.

The FLSA requires employers to pay overtime to employees who work more than 40 hours a week, according to 29 U.S.C. Section 207(a)(1). Ordinarily, the employees of a motor carrier that engages wholly in intrastate commerce are subject to the Secretary of Labor’s jurisdiction, and consequently to the overtime and maximum hours provisions of the FLSA. In contrast, the employees of a motor carrier that engages in interstate commerce may come under the Secretary of Transportation’s jurisdiction under the Motor Carrier Act 49 U.S.C. Section 31502. Under Section 31502(b), the Secretary of Transportation, rather than the Secretary of Labor, has the power to prescribe these employees’ qualifications and maximum hours of service.

Employees subject to the Secretary of Transportation’s jurisdiction are exempt from the FLSA’s maximum hour and overtime provisions, and the motor carrier has the burden to show that an employee is exempt, the 7th Circuit noted.

Many motor carriers engage in both interstate and intrastate commerce, but a motor carrier employee cannot be subject to the jurisdiction of both the Secretary of Labor and the Secretary of Transportation simultaneously. Citing Goldberg v. Faber Indus., Inc., 291 F.2d 232, 234-35 (7th Cir. 1961), the Circuit Court held that an employee comes within the Secretary of Transportation’s jurisdiction so long as the employee is “subject, at any time, to be[ing] assigned to interstate trips.”

In the District Court, Hix submitted an affidavit from its corporate secretary, Gail Neil, in support of its claim that the FLSA motor carrier exemption applied to Johnson because the company routinely provides out-of-state services. The appeals court disagreed.

In its opinion, Bobby Johnson Jr. v. Hix Wrecker Service Inc., et al., No. 09-3023, the court held that Neil’s affidavit did not show that Hix engaged in interstate commerce within a “reasonable period of time” prior to the time during which it claims the exemption for Johnson. It also held that the affidavit did not establish that Johnson was subject to being used in interstate commerce during the four-month period or during any other “reasonable period of time.”

Johnson argued that the District Court erred in not finding that he was entitled to summary judgment on his claim that the owners and secretary – as employers under the FLSA –  were liable for unpaid wages. The District Court, finding that Johnson was exempt, did not address that issue, so the appeals court remanded for further proceedings consistent with its opinion.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Can I get this form on line,if not where can I obtain one. I am eligible.

  2. What a fine example of the best of the Hoosier tradition! How sad that the AP has to include partisan snark in the obit for this great American patriot and adventurer.

  3. Why are all these lawyers yakking to the media about pending matters? Trial by media? What the devil happened to not making extrajudicial statements? The system is falling apart.

  4. It is a sad story indeed as this couple has been only in survival mode, NOT found guilty with Ponzi, shaken down for 5 years and pursued by prosecution that has been ignited by a civil suit with very deep pockets wrenched in their bitterness...It has been said that many of us are breaking an average of 300 federal laws a day without even knowing it. Structuring laws, & civilForfeiture laws are among the scariest that need to be restructured or repealed . These laws were initially created for drug Lords and laundering money and now reach over that line. Here you have a couple that took out their own money, not drug money, not laundering. Yes...Many upset that they lost money...but how much did they make before it all fell apart? No one ask that question? A civil suit against Williams was awarded because he has no more money to fight...they pushed for a break in order...they took all his belongings...even underwear, shoes and clothes? who does that? What allows that? Maybe if you had the picture of him purchasing a jacket at the Goodwill just to go to court the next day...his enemy may be satisfied? But not likely...bitterness is a master. For happy ending lovers, you will be happy to know they have a faith that has changed their world and a solid love that many of us can only dream about. They will spend their time in federal jail for taking their money from their account, but at the end of the day they have loyal friends, a true love and a hope of a new life in time...and none of that can be bought or taken That is the real story.

  5. Could be his email did something especially heinous, really over the top like questioning Ind S.Ct. officials or accusing JLAP of being the political correctness police.

ADVERTISEMENT