Overtime and Per Diem
Hello members.
I don't know if this information will help anyone, but I hope it will, in regards to the way I do business. As most of you know, there have been discussions about overtime pay for drivers, regarding the Fair Labor Standards Act. When politicians excluded truck drivers from overtime protections in 1938, they were covered by the 1935 law that outlined their working hours. In 1966, an amendment to the FLSA again codified that truck drivers would be excluded. Organizations like the ATA have certainly not helped, with their position of drivers per mile wages increasing to help cover dead time or not paying for dead head mileage. I've found a way around this.
I have also given my nephew and his buddy raises this fiscal year. I've changed their payroll to reflect per diem, when away from home. Plus, I am now paying by the hour, with time and a half over eight, documented by their federally mandated ELD's. They are happy, because they are paid for all work performed. Driving and on-duty, not driving.
It took me quite a while to cultivate the four contracts we are working with. Has it been difficult to receive increases to our rates during this terrible economic time? You bet! But the performance my fellows have provided has been a huge help. And we continue to provide more than the 75 loads we are required to accomplish annually. Do the fellows get bored with the same runs week after week? You bet! But they fully understand that having these steady runs are worth their weight in gold.
As I said, I hope you find this interesting and helpful, whether running one rig or a small fleet. Maybe my explanation of how I do business will be thought provoking.