On June 30, 2015, the
U.S. District Court for the Middle District of Pennsylvania ruled
that drivers were entitled to make a claim for overtime pay when transporting
hydraulic fracturing water.
Plaintiffs worked as
haul drivers transporting water from Pennsylvania sources to natural gas rigs
within the state for hydraulic fracturing operations. They worked more than
forty hours per hour and thus seek to be paid for extra working hours as
mandated by the Federal Fair Labor Standards Act (FLSA) and Pennsylvania
Minimum Wage Act (MWA). Plaintiffs filed a lawsuit against their employer for
violation of both the federal and state provisions.
Defendant contended
that plaintiffs are not entitled to claim overtime pay under the Motor
Carrier Exemption section 13(b)(1) of the FLSA,
because they meet the requirements of such exemption. Employees falling under
the Motor Carrier Exemption are the ones that are “within the authority of the
Secretary of Transportation to establish qualifications and maximum hours of
service pursuant to Section 204 of the Motor Carrier Act of 1935.” For
employees to be exempt, they must be employed by a motor carrier and perform
activities that “affect the safety of operation of motor vehicles in
transportation on public highways in interstate or foreign commerce.”
To determine if the
exemption applies, the District Court went through two issues. First, the court
analyzed whether fracking water is property subject to the Secretary of
Transportation’s jurisdiction; and second, the court considered whether transportation
of fracking water affects interstate commerce. Defendants carry the burden of
proof when it comes to both issues.
The District Court
reasoned that water is property because drilling companies are water owners,
and it brings benefits to motor carriers. The District Court, however, found
that transportation of fracking water does not affect interstate commerce
because the final destination was considered to be the gas wells in
Pennsylvania where the freshwater was delivered rather than the disposal wells
in Ohio where the fracturing wastewater was ultimately delivered. Therefore,
the District Court concluded that plaintiffs are entitled to make a claim for
overtime pay. A trial is scheduled for August 3, 2015.
Information on this
case is available at docket no. 3:13-cv-02844.
Written by Chloe Marie - Research Fellow
07/30/2015
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