Second Circuit Clarifies Motor Carrier Exemption To Expand Overtime Protections Under New York Law

Motor Carrier Exemption Expands Overtime Protections Under New York Law

In April 2020, the Second Circuit Court of Appeals delivered a small but important victory for employees in New York that are otherwise exempt from overtime under the Fair Labor Standards Act’s (“FLSA”) Motor Carrier Exemption. Ordinarily, employees are exempt from overtime under the FLSA’s Motor Carrier Exemption if they are a driver, a driver’s helper, a mechanic, or hold some other position whose regular duties affect the safety of a motor vehicle that weighs more than 10,000 pounds and is utilized in interstate commerce.

Previously, the New York Labor Law (“NYLL”) was interpreted to adopt the FLSA Motor Carrier Exemption as well. However, the Second Circuit in Hayward v. IBI Armored Services, Inc. found that the plain meaning of the NYLL was that employees that are exempt under the FLSA Motor Carrier Exemption are entitled to overtime pay at time and one-half the minimum wage rate for all hours worked over forty per week. Note that these employees that are exempt from overtime under the FLSA that work in New York are not able to receive overtime at time and one-half their regular rate of pay, but the applicable minimum wage.

If you believe that you are not being paid overtime properly, or believe that you are improperly classified as exempt from being paid overtime under the law, please contact Borrelli & Associates, P.L.L.C. immediately to schedule a consultation.