FAIR LABOR STANDARDS ACT FORCED ON PUBLIC TRANSIT

An estimated $100 million in extra costs for transit is the result of a U.S. Supreme Court 1985 decision in the case of Garcia vs San Antonio Metropolitan Transit Authority (VIA Transit) finding that public transit employees are no longer exempt from minimum wage and overtime provisions of the federal Fair Labor Standards Act (FLSA). The Court overruled a 1976 decision that many state functions are protected from federal powers under the 10th Amendment. Because many transit employees work split shifts, the application of FLSA overtime requirements is complicated and could be more expensive if the U.S. Department of Labor decides compensation for overtime be paid retroactively. One of the important issues was what qualifies as a municipal service, with the Court ruling against public transit. FLSA requirements now to be complied with include payment of minimum wage for hourly employees, payment of overtime compensation for weekly work in excess of 40 hours at not less that 1.5 times the regular rate, and maintenance of detailed records concerning wages, hours and other employment conditions. A major problem will be resolution of transit workers' overtime with their split schedules. Transit's method of computing overtime differs from Department of Labor methodology. Since split shift work can involve premium pay for workers having the spread-time schedules, FLSA could require that these premiums be made part of the base pay before calculating the time-and-a-half rate. A definition of "regular rate of pay" is needed. The question of retroactivity still needed to be resolved.

  • Availability:
  • Corporate Authors:

    Bobit Publishing Company

    2500 Artesia Boulevard
    Redondo Beach, CA  United States  90278
  • Authors:
    • Dodd, J
  • Publication Date: 1985-7

Media Info

  • Pagination: 4 p.
  • Serial:
    • Metro
    • Volume: 81
    • Issue Number: 4
    • Publisher: Bobit Publishing Company
    • ISSN: 10098-0083

Subject/Index Terms

Filing Info

  • Accession Number: 00399814
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Sep 30 1985 12:00AM