When Can a Paid Break Become Unpaid?
Many of our clients contract to government entities – which means additional scrutiny from the Department of Labor. If you have drivers that fall under the Service Contract Act, you are required to comply with the Fair Labor Standards Act. We have seen increased DOL audits with our clients, and more companies are using LoadTrek to create work plans and monitor compliance with established plans.
A key provision is the creation and monitoring of authorized break periods – and the rules that stipulate whether or not these breaks should be compensable.
Many employers assume that, when an employee stretches a 15-minute break to 25 minutes, the FLSA does not allow the additional 10 minutes to be treated as non-compensable time.
On the contrary, the Labor Department’s internal enforcement manual takes the position that unauthorized break extensions need not be considered work time, so long as the employer has expressly and unambiguously told employees that:
- authorized breaks may last only for a specific length of time;
- any extension of those breaks is against the rules; and
- any extension of those breaks will be punished.
Remember that many states impose rest-break rules of their own. Employers must also be aware of and comply with whatever the applicable obligations are.
For purposes of what is and is not FLSA worktime under Labor Department interpretations, it can be useful to view scheduled breaks as falling into essentially three categories:
- Meal breaks, which are typically noncompensable time
- “Short” rest breaks of “about 20 minutes” or less, which the Labor Department says are typically compensable time
- Break periods which are neither meal breaks nor “short” rest breaks, which might or might not be compensable time.
We recommend that routes are created with break times and locations built into the route. These break locations should have instructions that explain the nature and expected duration of the break.
Fleet Telematics System (FTS) Defined
A Fleet Telematics System (FTS) allows the information exchange between a commercial vehicle fleet and their central authority, i.e., the dispatching office. A FTS typically consists of mobile Vehicle Systems (VS) and a stationary Fleet Communication System (FCS). The FCS may be a stand alone application maintained by the motor carrier or an internet service running by the supplier of the system. The FCS usually includes a database in which all vehicle positions and messages are stored.
Digital maps are often included which allow visualization of vehicle positions and traces. Communication with the FCS is realized by trunked radio, cellular, or satellite communication. Positioning of vehicles is usually realized by global satellite positioning systems and/or dead reckoning using a gyroscope and odometer.
Usually, the VS is equipped with a simple input device allowing drivers to send predefined status messages. Drivers may add simple content, e.g., numeric values, but usually cannot enter arbitrary text. Besides the messages sent by drivers, some VS can also automatically submit messages, e.g., the vehicle’s position, data from sensors in the cargo body, or vehicle data from the CAN-bus.
In 2002, major European commercial vehicle manufacturers, namely Daimler Chrysler, Scania, DAF, Volvo, and Renault, agreed to give third parties access to vehicle data using the CAN-bus as a connection. The Fleet Management Standard (FMS) is an open standard which is dependent on the vehicle’s equipment, with access to such vehicle data as fuel consumption, engine data, or vehicle weight.
Industry Insights from Jeff Sibio
ATRI RELEASES UPDATED OPERATION COSTS OF TRUCKING REPORT
The average marginal cost per mile in 2012 was $1.63, a slight decrease from the $1.71 found in 2011, according to the American Transportation Research Institute’s latest update to An Analysis of the Operational Costs of Trucking.
The research, which identifies trucking costs from 2008 through 2012 derives directly from fleets’ financial and operational data, provides carriers with an important high-level benchmarking tool and government agencies with real world data for future infrastructure improvement analyses.
After the Great Recession and a sharp decline in fuel prices resulted in decreased industry costs between 2008 and 2009, industry costs steadily rose through 2010 and 2011. The slight decrease in average operting costs in 2012 was most liekly due to the weak economic recovery and softening freight conditions experiences in the second half of the year.
Fuel costs were higher, at 64.1 cents per mile compared to 59 cents in 2011, while driver wages were slightly lower at 41.7 cents compared to 46 cents in 2011. Truck/trailer lease or purchase payments also dropped, form 18.9 cents per mile to 17.4 cents.
“Although we have seen condition improve since the Great Recession of several years ago, an uncertain economic fugure means we have to be ever diligent in watching costs. ATRI’s report provides critical financial data for carriers to use in benchmarking fleet performance and seeking opportunities for improved operations,” says Phil Byrd, Sr., president and CEO of Bulldog Hiway Express and first vice chairman of the Americnan Trucking Associations.
Since its original publication in 2008, the Operational Costs of Trucking reports continue to be one of the most requested ATRI reports among industry stakeholders. In addition to average costs per mile, ATRI’s report documents average costs per hour and includes cost breakouts by industry sector.
A copy of this repoert is available from ATRI at www.atri-online.org.