PolicyBrief
S. 893
119th CongressMar 6th 2025
Guaranteeing Overtime for Truckers Act
IN COMMITTEE

This act repeals an existing exemption under the Fair Labor Standards Act to ensure truckers are guaranteed overtime pay.

Alejandro "Alex" Padilla
D

Alejandro "Alex" Padilla

Senator

CA

LEGISLATION

Truckers Could Finally Get Overtime Pay as Congress Moves to Repeal Decades-Old FLSA Exemption

The “Guaranteeing Overtime for Truckers Act” is short, but its impact is huge—especially if you’re a long-haul driver or run a business that depends on shipping. This bill does one thing: it completely wipes out Section 13(b)(1) of the Fair Labor Standards Act (FLSA). That specific section has been a thorn in the side of labor for decades because it exempted certain transportation workers—primarily truck drivers—from mandatory overtime pay.

The End of a Decades-Old Loophole

For nearly 80 years, the FLSA has guaranteed most workers time-and-a-half pay for hours worked over 40 in a week. But Section 13(b)(1) created a carve-out for employees whose hours were regulated by the Secretary of Transportation under the Motor Carrier Act. In plain English? This exemption meant that many truck drivers, who often work grueling hours away from home, could be paid straight time even if they blew past the 40-hour mark. This bill slams the door on that exemption, effectively putting truck drivers and others previously covered under 13(b)(1) back under standard federal overtime rules.

What This Means for Your Paycheck

If you’re a driver, this is a massive win for your wallet. Right now, a driver might work 60 hours in a week and get paid 60 hours at their normal hourly rate. Under this new rule, those extra 20 hours would have to be paid at 1.5 times their normal rate. For a driver making, say, $30 an hour, those 20 overtime hours jump from $600 to $900 in a single week. This is a direct boost to compensation, recognizing the intense demands and hours required of the job. It also creates a financial incentive for companies to manage schedules better, potentially leading to better work-life balance for drivers.

The Cost of Doing Business

This change isn't free, and the transportation industry will feel the pinch immediately. Companies that operate on tight margins, relying on long-haul drivers putting in 50 or 60 hours per week at straight time, will see their labor costs climb significantly (Section 2). For a large trucking firm, this could mean millions in new payroll expenses annually. We’re talking about a fundamental shift in how the economics of moving goods across the country works. This could lead employers to raise shipping rates, restructure routes to keep drivers under 40 hours, or potentially look to automation or independent contractor models—though the latter comes with its own legal risks regarding worker classification. It’s a classic trade-off: higher wages for essential workers versus increased operating costs for the businesses employing them.