SENATE BILL REPORT

SB 6405

BYSenators Sellar and Hansen

Clarifying application of overtime standards to employees of motor carriers hauling in interstate commerce.

Senate Committee on Transportation

Senate Hearing Date(s):January 25, 1990

Senate Staff:Mary McLaughlin (786-7300)

AS OF JANUARY 25, 1990

BACKGROUND:

On October 20, 1988, the Washington State Supreme Court ruled that the regulations governing the maximum number of hours an employee of an interstate motor carrier may work as contained in the federal Motor Carrier Act (MCA) does not preempt the overtime provisions of Washington's Minimum Wage Act (MWA).  The MWA requires employees time and one-half when the work week exceeds 40 hours.

Because long haul truck and bus drivers are usually paid on a per mile or percentage of the gross income per load, rather than an hourly basis, SB 5746 was enacted last session to address the overtime compensation issue.  The pay system used to compensate a truck or bus driver now includes overtime that is reasonably equivalent to that required in the MWA for working more than 40 hours per week.  Other employees of an interstate carrier are eligible for the hourly time and one-half overtime wages contained in the MWA.

Some of the back pay overtime wage claims and complaints were filed as early as 1986.  The Department of Labor and Industries (L&I) has begun the auditing process to determine the back wages owed employees of interstate carriers.  Because of the time commitment and complexity of the auditing process, the department filed a class action lawsuit against 41 trucking companies in August 1989.  The department's reasoning was to toll the statute of limitations to preserve as much of the back overtime pay as possible.  From the date the lawsuit was filed, the overtime pay owed can be calculated back to August 1987 based on the statute of limitations.

SUMMARY:

The state's Minimum Wage Act overtime and reasonably equivalent overtime provisions for employees of interstate carriers are effective October 20, 1988, the date of the state's Supreme Court decision.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested