Federal Ruling Could Mean Overtime Pay For Drivers
A federal court decision spells big trouble for some New Jersey-based truckers. A 3rd Circuit Court of Appeals ruling requires all New Jersey carriers to pay drivers time-and-a-half for each hour over 40 worked in any one week
A federal court decision spells big trouble for some New Jersey-based truckers. A 3rd Circuit Court of Appeals ruling requires all New Jersey carriers to pay drivers time-and-a-half for each hour over 40 worked in any one week.
Exactly how the opinion will affect mileage or trip pay is unknown. But Sam Cunninghame, Executive Director of the New Jersey Motor Truck Assn., said the result of the ruling could be catastrophic for some New Jersey carriers. Cunninghame said neither he nor his members were aware of the court case until the decision was issued on July 26.
The case involved Loomis, Fargo & Co., an armored car carrier headquartered in Houston, TX, and an independent union representing employees at its Lyndhurst, NJ, branch. According to the plaintiff's lawyer, Paul Schachter of Reinhardt & Schachter, P.C., Newark, NJ, Loomis Fargo was requiring overtime of workers but not paying overtime as required by New Jersey law.
But three years ago the N.J. Department of Labor promulgated a regulation requiring employers to pay one-and-a-half times the state minimum wage, not a multiple of the employee's regular pay. Since most New Jersey truck drivers already earn more than one-and-a-half times the minimum wage, the regulation negated the law for all practical purposes.
The regulation was issued after hearings at which it was claimed New Jersey carriers would lose business to out-of-state competitors if they were required to pay time-and-a-half based on actual salary. The Labor Department said its regulation was intended to protect the jobs of New Jersey drivers.
David M. Vaughan, a lawyer with Elarbee, Thompson & Trapnell, LLP, of Atlanta, GA, argued Loomis, Fargo's case before the three-judge panel. He said he will request that the case be reheard by the full Circuit Court. If the court refuses, which is likely, Vaughan said the possibility of taking the case to the U.S. Supreme Court would be considered.
More Drivers

Trump Administration Looks to Put More Veterans Behind the Wheel
The Freedom Haulers program pulls together existing and expanded programs at several federal agencies to recruit veterans to drive commercial heavy-duty trucks and cut the red tape for them to get a CDL, training, and employment.
Read More →
Putting Mack’s Command Steer to the Test
A test drive of Mack’s Command Steer active steering system evaluates how it can make truck driving easier and less tiring.
Read More →
Competition Heating Up for Truck Drivers
New report reveals rising driver hiring costs, the return of sign-on bonuses, growing AI advantages, and the operational factors shaping driver retention.
Read More →
How Fraley & Schilling Improved Logbook Compliance by Over 50%
Fraley & Schilling needed a way to close a compliance workflow gap in its ELD system without adding more work from driver training, reminders, and back-office follow-ups. It found the answer in a custom driver app.
Read More →
Volvo Goes Gaming
Volvo has roared into American Truck Simulator with two new flagship trucks.
Read More →
What the Best Fleets to Drive For Teach About Driver Retention
Survey fatigue, AI-powered routing, owner-operator expectations, and the decline of social media all emerged as themes from this year's Best Fleets to Drive For program.
Read More →
Driver Retention Lessons From the Best Fleets to Drive For
What separates trucking's best workplaces from the rest? Jane Jazrawy shares the biggest lessons from this year's Best Fleets to Drive For program on driver retention, communication, AI, and workforce trends on the HDT Talks Trucking podcast.
Read More →
Farewell, CDL: Why I'm Giving Up My Commercial Driver's License
After more than 20 years as a CDL holder, HDT Executive Editor Jack Roberts is letting his commercial license expire. Not because he wants to — but because trucking's nuclear verdict crisis has made the risks of public-road test drives too great for editors, manufacturers, and everyone involved.
Read More →How Top Trucking Fleets Improve Driver Retention [Video]
What do healthy snacks, optimized routing, and just picking up the phone have in common? They're all strategies the Best Fleets to Drive For are using to retain truck drivers.
Read More →
Trucker Path Adds Verisk CargoNet Theft Data to Navigation Platform
Trucker Path’s new cargo theft risk overlays give drivers and fleets visibility into high-risk areas, stolen commodity trends, and theft hotspots.
Read More →
