MEMORANDUM OPINION
I. Introduction
Pending before the court is a motion for partial summary judgment (“Motion”) (ECF No. 26), filed by defendant Frito-Lay, Inc. (“defendant” or “Frito-Lay”) with respect to claims filed by plaintiffs Nancy Cerutti (“Cerutti”), James Coffman, John Constabile, Matthew Donaldson, Anthony Georgiana, Donald McKnight, Linda Massucci, Michael Massucci, Shaun Christopher, and John Arison (collectively, “plaintiffs”). Plaintiffs assert that Frito-Lay violated the Pennsylvania Minimum Wage Act of 1968 (“PMWA”), as amended, 43 Pa.Stat.Ann. §§ 333.101 et seq., by failing to pay them overtime (“OT”) compensation as required by 43 Pa.Stat.Ann. § 333.104(c). Plaintiffs allege claims on behalf of themselves and others similarly situated. Because a class has not been certified at this time, however, only the named plaintiffs are before the court. For the reasons stated below, the court will grant in part and deny in part Frito-Lay’s Motion.
II. Procedural and Factual Background
A. Procedural Background
Plaintiffs filed the instant action in the Court of Common Pleas of Fayette County, Pennsylvania and defendant removed plaintiffs’ action to federal court, pursuant to the Class Action Fairness Act of 2005, 28 U.S.C. § 1453. (ECF No. 1.) After removal, plaintiffs filed an amended complaint (“Amended Complaint”) asserting that Frito-Lay failed to pay overtime (“OT”) compensation as required by the PMWA, for the period from April 21, 2006 through the present. (ECF No. 21.)
Frito-Lay argues it is entitled to partial summary judgment because: 1) plaintiffs were exempt from OT compensation under the Pennsylvania motor carrier exception (“PMCE”) to the PMWA, which is codified in 43 Pa.Stat.Ann. § 303.105(b)(7), for the entire period in question; and 2) even if plaintiffs’ were not exempt, Frito-Lay properly compensated plaintiffs for all OT hours worked utilizing the fluctuating workweek (“FWW”) method of calculating OT compensation, described in 29 C.F.R. § 778.114. Plaintiff disputes those arguments.
Frito-Lay argues that the issues before the court are solely legal in nature. Plaintiffs agree with one caveat: plaintiffs indicate that a least one legal issue raised by defendant Frito-Lay, i.e., the calculation of when the hourly rate of pay is determined, must be resolved by a jury. 2 The relevant factual background, however, is not complex and is focused upon Frito-Lays’ driving operations, its OT compensation method, and plaintiffs’ job responsibilities.
Frito-Lay is an international snack food manufacturing company engaged in manufacturing, sales and distribution of snack foods across the United States, Canada and Mexico. (SF ¶ 1; ECF No. 34.) 3 Frito-Lay sells and delivers its products to customers in Pennsylvania primarily through route salesman representatives (“RSRs”). (Id. ¶ 3.) At all relevant times, plaintiffs were RSRs. (Id. ¶ 6.) Nine plaintiffs drove Frito-Lay’s trucks with a gross vehicle weight rating (“GVWR”) under 10,-001 pounds. (Id) One plaintiff — Cerutti— drove a Frito-Lay’s truck with a GVWR over 10,001 pounds. (Id.)
Frito-Lay compensated plaintiffs through a base salary and commissions on sales, pursuant to a collective bargaining agreement (“CBA”) negotiated between the RSRs’ union and Frito-Lay. (SF ¶ 4.) Under the CBA, plaintiffs were entitled to OT compensation for all time worked over forty hours in a workweek. Frito-Lay pays plaintiffs OT at one-half their regular rate of pay using the FWW method described in the federal code of regulations, 29 C.F.R. § 778.114. (Id ¶ 5.) Frito-Lays’ handbook explains the OT compensation method applicable to plaintiffs as follows:
Any week in which you work more that forty (40) hours, you will receive, in addition to your base salary, extra pay for overtime hours. This overtime is calculated as follows:_
Base Salary + any = TOTAL WEEKLY Commissions_COMPENSATION
Divide Total Weekly = HOURLY RATE OF PAY Compensation by Total hours worked for that week_
Take Hourly Rate of Pay, = OVERTIME PAID FOR multiply this number by .5, THAT WEEK then multiply by the number of overtime hours_
(SF ¶ 5, ECF No. 34; Def.’s RSR Handbook, App. Ex. B, ECF No. 29.)
III. Summary Judgment Standard
Federal Rule of Civil Procedure 56 provides in relevant part:
(a) Motion for Summary Judgment or Partial Summary Judgment. A party may move for summary judgment, identifying each claim or defense — or the part of each claim or defense — on which summary judgment is sought. The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law. The court should state on the record the reasons for granting or denying the motion....
(c) Procedures.
(1) Supporting Factual Positions. A party asserting that a fact cannot be oris genuinely disputed must support the assertion by:
(A) citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations (including those made for purposes of the motion only), admissions, interrogatory answers, or other materials; or
(B) showing that the materials cited do not establish the absence or presence of a genuine dispute, or that an adverse party cannot produce admissible evidence to support the fact.
Fed. R. Crv. P. 56(a), (c)(1)(A), (B).
Rule 56 of the Federal Rules of Civil Procedure “mandates the entry of summary judgment, after adequate time for discovery and upon motion, against a party who fails to make a showing sufficient to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial.”
Marten v. Godwin,
An issue of material fact is in genuine dispute if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.
Anderson v. Liberty Lobby, Inc., 477
U.S. 242, 248,
“[Wjhen the moving party has carried its burden under Rule 56(c), its opponent must do more than simply show that there is some metaphysical doubt as to the material facts ____ Where the record taken as a whole could not lead a rational trier of fact to find for the non-moving party, there is no genuine issue for trial.”
Scott v. Harris,
In deciding a summary judgment motion, a court must view the facts in the light most favorable to the nonmoving party and must draw all reasonable inferences and resolve all doubts in favor of the non-moving party.
Doe v. Cnty. of Centre, PA
IV. Discussion
Plaintiffs argue that Frito-Lay violated the PMWA because it failed to record accurately all the hours worked by plaintiffs and failed to compensate them for all hours they worked. Plaintiffs contend they were entitled to be paid straight time at their regular rate of pay for all hours worked up to forty hours in a workweek, and OT compensation at not less than one and one-half times their regular rates of pay for all hours worked in excess of forty hours in a workweek, pursuant to 43 Pa. Stat.Ann. §§ 333.104(c). Plaintiffs allege that Frito-Lay willfully failed to pay them properly, in violation of the PMWA. “The question of how Plaintiff[s] spent [their] time is a question of fact, while whether those particular activities exclude [them]
Frito-Lay contends that the PMCE applies to all plaintiffs for the entire limitations 4 period, or, at the very least until June 6, 2008. Plaintiffs contend that the PMCE did not exempt them at any time after April 26, 2006. Plaintiffs agree that they were exempt from the OT compensation requirements of the PMWA prior to April 26, 2006, which is the date Frito-Lay became aware of the effect of enactment of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (“SAFETEA-LU”), Pub.L. 109-59, 119 Stat. 1144. The SAFETEA-LU made changes to the Federal Motor Carrier Act (“MCA”), as amended, 49 U.S.C. § 301 et seq.
A. Applicability of the Federal Motor Carrier Act to the PMC A
In 1935, Congress enacted the MCA.
United States v. Am. Trucking Ass’ns,
In 1938, Congress enacted the Fair Labor Standards Act, as amended (“FLSA”), 29 U.S.C. §§ 201 et seq. The PMWA, enacted in 1968, mirrors in many respects the FLSA and “is also designed to protect employees who do not have real bargaining power.”
Commonwealth v. Stuber,
1. Motor Carrier Exemption
This general rule, however, is subject to various exemptions in both the federal and state statutes. One federal exemption is the Federal Motor Carrier Exemption (“FMCE”), which provides in relevant part:
The provisions of [29 U.S.C.] section 207 of this title [the FLSA] shall not apply with respect to
(1) any employee with respect to whom the [Federal] Secretary of Transportation has power to establish qualifications and maximum hours of service pursuant to the provisions of section 31502 of Title 49; ____
29 U.S.C. § 213(b)(1). Prior to August 10, 2005 and after June 6, 2008, under § 31502, the Secretary of Transportation was and is authorized to establish qualifications and maximum hours of service for “employees ... of a motor carrier.” 49 U.S.C. § 31502(b)(1).
The PMCE, which is modeled after the FMCE, is set forth in 43 Pa.Stat.Ann. § 333.105(b)(7), which provides in relevant part:
(b) Employment in the following classifications shall be exempt from both the minimum wage and overtime provisions of this act [the PMWA]
(7) Any employee 7 of a motor carrier with respect to whom the Federal Secretary of Transportation has power to establish qualifications and maximum hours of service under 49 U.S.C. § 3102(b)(1) and (2) (relating to requirements for qualifications, hours of service, safety and equipment standards). 8
43 Pa.Stat.Ann. § 333.105(b)(7).
“The ‘fundamental test’ for determining whether the [FMCE] applies is whether ‘the employee’s activities affect safety of operation’ of motor vehicles and are therefore within the jurisdiction of the Secretary of Transportation.”
Dalton v. Sabo, Inc.,
Civ. No. 09-358,
The party seeking to invoke the FMCE carries the burden of proving “ ‘plainly and unmistakably’ ” that it is entitled to the exemption.
Packard v. Pittsburgh Transp. Co.,
The parties agree that at the time the PMCE was enacted — 1990—certain employees of a Pennsylvania motor carrier were exempt from the OT provisions of both the FLSA and PMWA. 9 The parties disagree, however, whether recent amendments to the MCA and the FLSA — as will be discussed infra — are incorporated into the PMCE. Defendant argues that they are not. Plaintiffs argue that they are.
There are four time frames that the court must consider here: 1) pre-August 10, 2005, 2) between August 10, 2005 and April 26, 2006, 3) between April 26, 2006 and June 6, 2008, and 4) post-June 6, 2008. The applicable periods relate to the timing of various amendments to the MCA and the FLSA. It is noteworthy that no relevant amendments were made to the PMWA or the PMCE after August 10, 2005.
a. Before August 10, 2005
Prior to August 10, 2005, a motor carrier was defined in 49 U.S.C. § 31502 as “a person providing motor vehicle transportation for compensation.” 49 U.S.C. § 31502(12) (2000). The jurisdiction of the federal Secretary of Transportation covered motor carriers and did not relate to the weight of vehicles driven by employees of motor carriers. The effect of the pre2005 provisions of the MCA was to exempt all drivers employed by a motor carrier— irrespective of the weight of the vehicles— from the OT provisions of the FLSA.
Brooks v. Halsted Commc’ns, Ltd.,
On October 1, 1990, the federal Department of Transportation’s Motor Carrier Safety Regulations applicable to drivers of commercial motor vehicles took effect. 49 C.F.R. §§ 390 et seq. Regulations set forth in 49 C.F.R. 395.3(a) 10 set maximum hours for drivers, defined in 49 C.F.R. § 390.5 as “any person who operates a commercial motor vehicle.” A commercial motor vehicle was defined in the regulations as:
any self-propelled or towed motor vehicle used on a highway in interstate commerce to transport passengers or property when the vehicle—
(1) Has a gross vehicle weight rating or gross combination weight rating, or gross vehicle weight or gross combination weight, of 4,536 kg (10,001 pounds) or more, whichever is greater; or
(2) Is designed or used to transport more than 8 passengers (including the driver) for compensation; ...
49 C.F.R. § 390.5.
Under these regulations, the Secretary of Transportation was not exercising jurisdiction over drivers of motor vehicles with a GVWR of 10,0000 pounds or less.
Fried-rich,
b. After August 10, 2005 and Prior to June 6, 2008
On August 10, 2005, SAFETEA-LU was enacted. It changed the reference to a “motor carrier” in § 31502 to a
“commercial
motor vehicle.” Pub.L. No. 109-59, 119 Stat. 1144 (emphasis added);
Scott v. Raudin McCormick, Inc.,
No. 08-4045,
(1) “commercial motor vehicle” means a self-propelled or towed vehicle used on the highways in interstate commerce to transport passengers or property, if the vehicle—
(A)has a gross vehicle weight rating or gross vehicle weight of at least 10,001 pounds, whichever is greater;
(B) is designed or used to transport more than 8 passengers (including the driver) for compensation;
(C) is designed or used to transport more than 15 passengers, including the driver, and is not used to transport passengers for compensation; or
(D) is used in transporting material found by the Secretary of Transportation to be hazardous under section 5103 of this title and transported in a quantity requiring placarding under regulations prescribed by the Secretary under section 5103.
49 U.S.C. § 31132(1)(A)-(D).
Under that change the Secretary of Transportation no longer had jurisdiction over drivers of light weight vehicles, i.e., vehicles with a GVWR of 10,000 pounds or less.
Cf. Friedrich,
c. Safe Harbor Period (August 10, 2005-August 9, 2006)
On June 6, 2008, Congress passed the SAFETEA-LU Technical Corrections Act (“TCA”), 110 Pub.L. No. 244, 122 Stat. 1572., which amended certain provisions of the MCA and the FLSA. This act restored the “previous definition of ‘motor carrier’ by replacing [in § 31502] ‘commercial motor carrier’ with ‘motor carrier.’ ”
Dalton,
(1)LIMITATION ON LIABILITY.— An employer shall not be liable for a violation of section 7 of the Fair Labor Standards Act of 1938 (29 U.S.C. 207) with respect to a covered employee if-
(A) the violation occurred in the 1-year period beginning on August 10, 2005; and
(B) as of the date of the violation, the employer did not have actual knowledge that the employer was subject to the requirements of such section with respect to the covered employee.
Pub.L. No. 110-244, 122 Stat. 1572 § 306(b)(1) (emphasis added). The phrase “covered employee” is defined in the TCA as an individual:
(1) who is employed by a motor carrier or motor private carrier (as such terms are defined by section 13102 of title 49, United States Code, as amended by section 305);
(2) whose work, in whole or in part, is defined—
(A) as that of a driver, driver’s helper, loader, or mechanic; and
(B) as affecting the safety of operation of motor vehicles weighing 10,000 pounds or less in transportation on public highways in interstate or foreign commerce, except vehicles-
(i) designed or used to transport more than 8 passengers (including the driver) for compensation;
(ii) designed or used to transport more than 15 passengers (including the driver) and not used to transport passengers for compensation; or
(iii) used in transporting material found by the Secretary of Transportation to be hazardous under section 5103 of title 49, United States Code, and transported in a quantity requiring placarding under regulations prescribed by the Secretary under section 5103 of title 49, United States Code; and
(3)who performs duties on motor vehicles weighing 10,000 pounds or less.
Id.
at § 306(c)(1)-(3);
see Vidinliev v. Carey Int’l, Inc.,
Plaintiffs allege that defendant had actual knowledge that the scope of the exemption changed no later than April 26, 2006 and do not contest the applicability of the PMCE prior to that date. Frito-Lay did not dispute this allegation. (Pis.’ Br. 5, App., Ex. 1, ECF No. 30-1 at 6 ¶7.) (“Through affidavits and deposition testimony, Defendant has established that they were unaware of the affect [sic] of the enactment of SAFETEA-LU had upon the Motor Carrier Act exemption as that exemption applied to their route salespersons until April, 2006.”).
2. After June 6, 2008
As a result of the TCA amendments to the MCA on June 6, 2008, which replaced the words “commercial motor vehicle” with the words “motor vehicle” in § 31502, the Secretary of Transportation regained the
Section 306(a) of the TCA, added a note with respect to the applicability to § 207 of the FLSA, providing in relevant part:
(a) APPLICABILITY FOLLOWING THIS ACT — Beginning on the date of enactment of this Act [i.e., June 6, 2008, section 7 of the [FLSA] shall apply to a covered employee notwithstanding section 13(b)(1) of that Act (29 U.S.C. § 213(b)(1)).
(c) COVERED EMPLOYEE DEFINED ... an individual—
(1) who is employed by a motor carrier or motor private carrier (as such terms are defined by section 13102 of title 49, United States Code, as amended by section 305);
(2) whose work, in whole or in part, is defined—
(A) as that of a driver, driver’s helper, loader, or mechanic; and
(B) as affecting the safety of operation of motor vehicles weighing 10,-000 pounds or less in transportation on public highways in interstate or foreign commerce ...
(3) who performs duties on motor vehicles weighing 10,000 pounds or less.
122 Stat. 1572, § 306(a) and (c). This change refers to the FLSA and not to the jurisdiction of the Secretary of Transportation under the MCA.
B. Parties’ Arguments
Frito-Lay argues that it is entitled to partial summary judgment for three reasons. First, Frito-Lay argues plaintiffs were exempt from OT requirements under the PMCE, the PMWA exemption for employees of motor carriers, for the entire limitations period of this action.
See
43 Pa.Stat.Ann. § 333.105(b)(7). As previously noted, both the FLSA and the PMWA generally require an employer to pay OT to employees for hours worked over forty in a workweek, except in certain limited exceptions. 29 U.S.C. §§ 207(a)(1) and 213(b)(1); 34 Pa.Code § 231.41, 43 Pa.Stat. Ann. § 333.105;
Stuber,
Plaintiffs argue the SAFETEA-LU provisions are applicable and they were not exempt from the OT requirements of the PMWA pursuant to the PMCE after the enactment of those provisions. Plaintiffs maintain that SAFETEA-LU affected changes in the application of the PMCE because changes in the MCA which affect
Second, and in the alternative, Frito-Lay argues that to the extent the PMCE incorporates SAFETEA-LU, drivers for companies whose fleets included trucks with a GVWR both over and under 10,001 pounds continued to qualify for the exemption at all times. Frito-Lay asserts that SAFETEA-LU only affected the definition of qualifying employers, and had no effect on qualifying employees. Defendant maintains that its employees were not covered by SAFETEA-LU, and that the earliest possible date the employees could be covered would be June 6, 2008 — the date Congress enacted the TCA.
Third, even if the court, as a matter of law, determines that Frito-Lay is liable to plaintiffs for OT compensation for the applicable time period, Frito-Lay asserts that it properly compensated plaintiffs under the PMWA by voluntarily paying OT compensation to plaintiffs for hours worked over forty in a workweek, using the FWW method of calculating OT compensation set forth in 29 C.F.R. § 778.114. Defendant maintains that courts have found the FWW method of calculating OT compensation lawful in Pennsylvania. Plaintiffs respond that the Motion should be denied because Frito-Lay did not carry its burden of showing that Pennsylvania considers the FWW lawful under the instant circumstances. Plaintiffs argue there is a genuine issue of material fact about whether defendant met the threshold requirements of affording defendant the option to pay plaintiffs OT compensation pursuant to the federal FWW method. Each argument will be addressed.
1. Applicability of MCA amendments to the PMCE
Defendant contends the amendments to the MCA have no impact on the PMCE because, as a principle of statutory construction, the PMCE does not incorporate any amendments to the MCA made after the date of the enactment in 1990 of the PMCE. Defendant relies upon
Appeal of Free,
if a statute specifically adopts a ... particular provision[] of a former statute ... such statute or particular provision thereof becomes a part of the adopting statute as though written therein, and are enforced by virtue of the adopting act; but it does not include any subsequent amendment or modification of the prior statute or its particular provisions, unless expressly so declared or clearly implied.
Free,
The issue before the Pennsylvania Supreme Court in
Appeal of Free
was the proper interpretation of the phrase “under existing law” in the context of the disposition of fines imposed upon persons under the Automobile Code of July 7, 1913, 1913 Pa. Laws 672, as amended, for conviction of driving under the influence of alcohol.
Appeal of Free,
“all fines ... imposed in the courts of York county, which under existing laws, are not payable to the commonwealth, for its use, are hereby directed to be paid into the treasury of said county, for the use of a law library.”
Appeal of Free,
In discussing that issue in a general visa-vis specific context, the Pennsylvania Supreme Court in
McKinney v. Foster,
In Free’s Appeal ... [t]he specific question was whether the 1867 Act required that fines for the offense of driving while intoxicated, punishable under the 1913 Automobile Code, as amended, be paid to the county since the Automobile Code was not a law in existence in 1867, or whether the fines should go to the Commonwealth by virtue of the laws in existence at the time of imposition of the fines In deciding that ‘existing laws’ included laws subsequently passed and in existence at the time the fines and penalties are imposed, this Court said,301 Pa. at page 85 ,151 A. at page 584:
“The general rule of construction, where reference is made to existing laws, was discussed in Re Guenthoer’s Estate,235 Pa. 67 ,83 A. 617 , and this court there so thoroughly discussed the question that we deem it unnecessary to do more than quote what was there said (235 Pa. at page 73 ,83 A. at page 617, 618 ): ‘If a statute specifically adopts a former statute or particular provisions of a former statue [sic] by reference to its title or otherwise, such statute or particular provisions thereof become a part of the adopting statute as though written therein, and are enforced by virtue of the adopting act; but it does not include any subsequent amendment or modification of the prior statute or its particular provisions, unless expressly so declared or clearly implied. While this general rule of statutory construction is well settled and recognized by judicial decisions as well as by text-writers, yet it is equally well established as a rule of statutory construction that where the reference in an adopting statute is to the law generally which governs the particular subject, and not to any specific act or part thereof designated in the adopting act, the reference means the law at the time the exigency arises as to which the law is to be applied. We have frequently recognized this distinction and applied the rule that, where the reference in an adopting statute is to the law generally upon any subject, the adopting statute means the law in force on the subject at the time it is invoked....”
It seems clear to us, therefore, that Section 3 of the Act of 1854 applies to violations of the intoxicating beverage laws as they existed at the time of the offense ....
McKinney v. Foster,
Defendant’s argument assumes that the reference in 43 Pa.Stat.Ann. § 333.105(b)(7) to 49 U.S.C. § 3102(b)(1) and (2) refers to a statute of specific reference — as opposed to a statute of general reference. This assumption belies the parenthetical following 49 U.S.C. § 3102(b)(1) and (2) “(relating to the requirements for qualifications, hours of service, safety and equipment standards)”. The provisions of 49 U.S.C. § 31502
12
are
As discussed supra, in 1990 when the PMCE was enacted, the jurisdiction of the Secretary of Transportation under the MCA was not conditioned on truck weight. Amendments to § 31502 of the MCA in 2005, however, in effect limited the Secretary of Transportation’s jurisdiction conditioned upon truck weight. The amendments to the MCA in 2008 restored that jurisdiction. Because amendments to the MCA made after 1990 changing the jurisdiction of the Secretary of Transportation relating to “requirements for qualifications, hours of service, safety and equipment standards,” 43 Pa.Stat. Ann.§ 333.105(b)(7), 13 affect the scope of the PMCE, this court cannot agree with defendant’s argument that the weight of its trucks driven by plaintiffs is irrelevant to the instant cause of action. 14
Plaintiffs rely upon Pennsylvania rules of statutory construction to support this conclusion. The pertinent provision, which helps inform this court’s conclusion, is:
§ 1937. References to statutes and regulations
(a) A reference in a statute to a statute or to a regulation issued by a public body or public officer includes the statute or regulation with all amendments and supplements thereto and any new statute or regulation substituted for such statute or regulation, as in force at the time of application of the provision of the statute in which such reference is made, unless the specific language or the context of the reference in the provision clearly includes only the statute or regulation as in force on the effective date of the statute in which such reference is made.
(b) The provisions of subsection (a) of this section shall apply to every statute finally enacted on or after July 1, 1971.
1 Pa. Cons.Stat. § 1937 (emphasis added). Therefore, the reference to the jurisdiction of the Secretary of Transportation in the PMCE refers to the Secretary’s jurisdiction on the date in issue, not the jurisdiction applicable in 1990.
Frito-Lay disputes the applicability of the rule of statutory construction set forth in 1 Pa. Cons.Stat. § 1937 (“section 1937”) on the basis that section 1937 is only applicable to another Pennsylvania statute, regulation or ordinance, and is not applicable where the statute makes reference to a federal statute in an area where Congress has not exercised its powers under the Supremacy Clause. Defendant contends the construction principle was intended to apply to statutes issued by a public body within Pennsylvania, where changes to the incorporated provision would be under the control of the Pennsylvania legislature.
Defendant maintains that incorporating such a provision with all future amendments of a federal statute would be an abdication of legislative responsibility and
The issue before the Pennsylvania Supreme Court in
Insurance Federation of Pennsylvania
was whether the Pennsylvania Department of Insurance could mandate binding arbitration for an uninsured motorist and underinsured motorist coverage dispute. The issue of incorporating an amendment to a federal statute that was originally incorporated into a Pennsylvania statute was not before the Court. That issue was before the Pennsylvania Commonwealth Court in
Charter Hospital of Bucks County, Pa., Inc. v. Commonwealth,
In Charter Hospital, the Commonwealth Court of Pennsylvania determined that pursuant to Pennsylvania’s Statutory Construction Act, 1 Pa. Cons.Stat. § 1937, a self-destructive clause of the Pennsylvania Health Care Facilities Act exclusionary provision did not constitute an unlawful delegation of legislative authority to the federal Secretary of Health, Education and Welfare. The court reasoned that the type of legislation in that case fit a status-finding description- — -as opposed to rule-making- — -by asking for a determination about whether the exclusionary provision was inconsistent with a federal regulatory scheme. In discussing the lawfulness of the delegation of legislative authority of Pennsylvania’s General Assembly to the federal Secretary of Health Education and Welfare, the court in Charter Hospital stated:
The law is well settled that:
[T]he Legislature cannot delegate its power to make a law; but it can make a law to delegate a power to determine some fact or state of things upon which the law makes, or intends to make, its own action depend.
Locke’s Appeal,72 Pa. 491 , 498 (1873). Locke’s Appeal thus distinguished between two types of legislation: “status-finding” and “rule-making”. In East Suburban Press, Inc. v. Township of Penn Hills, 40 Pa.Commonwealth Ct. 438, 444,397 A.2d 1263 , 1266 (1979), we noted the following distinctions between the two:
[Legislation which involves status-finding, a statutory statement of policy by the legislature to become operative only upon the finding by an administrative agent that a described status exists. A status-finding statute does not involve a delegation of law-making, at least not in the sense of creating general rules governing the subject of the legislature’s concern, and therefore the courts have not required detailed standards, but only a description of the status....
A second type of statute of the rule-making type, where the legislature states a general policy but gives the administrative agent, within limits set by express standards, the power to fill in details of the policy with regulations. This type involves a delegation of rule-making in the sense of creating generalized rules of continuing application on the subject of the legislature’s concern. See also Latella v. Unemployment Compensation Board of Review, 74 Pa.Commonwealth Ct. 14,459 A.2d 464 (1983). The delegation in section 103 to the Secretary of Health, Education and Welfare fits the status-finding description.It asked for a determination as to whether the exclusionary provision was inconsistent with the federal regulatory scheme. No improper rule-making is involved; the clause does not delegate an untrammeled power to make a general rule.
The General Assembly enacted the Health Care Facilities Act to establish a certificate-of-need program under the auspices of the federal program, P.L. 93-641. To participate in the federal program, administratively and financially, the state program had to comply with federal requirements. The legislature, in enacting section 103 of the Act, intended to exclude non-recipient health care facilities from certificate-of-need review unless such an exclusion was inconsistent with federal regulations. Section 903 of the Act, 35 P.S. § 448.903, states: It is the intent of this act to meet minimal Federal requirements for compliance with Federal law and regulations under Title XV of the Public Health Service Act requiring State certificate of need legislation as interpreted by the General Assembly. Should any provisions be found by a court to violate such requirements, such provisions shall be invalid and severable.
The self-destructing clause in section 103 ensured compliance with the applicable federal regulations, so that Pennsylvania could participate in the federally-sponsored certificate-of-need program. It did not delegate to the Secretary unlimited power to set a general policy for the state, but sought only a determination of whether this sole provision conformed to the established federal program.
Charter Hospital,
Defendant attempts to distinguish Charter Hospital on the basis that the Pennsylvania legislature does not need approval from the federal government to implement the PMWA. This distinction is not persuasive; rather, this court is persuaded that the intent of the PMCE is a status-finding type of legislation, as opposed to a rule-making type. Incorporating the reference to the jurisdiction of the federal Secretary of Transportation into the PMCE does not delegate to the federal government unlimited power to set a general policy for the state. Instead, like in Charter Hospital, it allows the Pennsylvania legislature to insure the PMCE exempts employees who have the status of being subject to the jurisdiction of the federal Secretary of Transportation. Therefore, the court finds that the PMCE incorporates the provisions of § 31502. 15 In other words, to the extent the federal Secretary of Transportation has power to establish the qualifications and maximum hours of service for an employee, that employee will be exempt from the PMWA under the PMCE.
2. SAFETEA-LU’s Effect on the Exempt Status of an Employee
a. Applicability of safe harbor provision for period between August 10, 2005 and April 26, 2006
Plaintiffs do not contest that the safe harbor provisions of the TCA are applicable here. (Pis.’ Br. 5-6, ECF No. 30.) Because it is undisputed that Frito-Lay did not become aware of the SAFETEA
b. Hybrid Fleet Analysis of FMCE
Here, the parties agree that SAFETEA-LU added a GVWR for the Secretary of Transportation to have jurisdiction to set qualifications and safety standards for employees of employers that are motor carriers. The parties agree that if an employer operates only vehicles over 10,001 pounds its employees are exempt from the OT requirements pursuant to the FMCE and, if amendments to the MCA are applicable to the PMCE, are exempt under the PMCE. Defendant and plaintiffs disagree, however, that post-SAFETEALU, but pre-TCA, in the situation where an employer may operate vehicles over and under the 10,000-pound threshold, an analysis of each individual employee’s activities is required to determine whether an employee of that employer was subject to the jurisdiction of the Secretary of Transportation. Specifically, the parties disagree about whether during that period an employee’s job requirements are considered in determining the applicability of the exemption from OT requirements of the FLSA and the PMWA. The issue raised is whether there is an exemption for employees of employers that operate vehicles with gross weights under and over 10,000 pounds — i.e., hybrid fleets, even though the employee may only operate a vehicle with a GVWR of 10,000 pounds or less.
Several courts have considered this issue with different outcomes depending upon the circumstances before the court. With respect to how the SAFETEA-LU change in referring to a “commercial motor carrier,” rather than just a “motor carrier,” applied prior to the 2008 change made by the TCA, which restored the reference to only a “motor carrier,” the district court in Vidinliev 16 considered an argument that the exemption applied under SAFETEA-LU because it only required that an employer show that it had some commercial motor vehicles in its fleet. The court rejected that argument, stating:
But if this were true, then a motor carrier could buy one commercial motor vehicle and thereafter all of its drivers would be exempt from overtime pay, no matter how remote or infrequent the possibility of an interstate trip in a commercial motor vehicle.
Vidinliev,
The plaintiffs in
Vidinliev
argued that, in order to meet the SAFETEA-LU definition, the defendants were required to show that each plaintiff “engaged in more than a
de minimus
number of interstate trips in commercial motor vehicles.”
Id.
The court reasoned that under the plaintiffs’ standard, “[a]n entire class of employees may be ‘exempt even though the interstate driving on [sic] particular employees was sporadic and occasional, and in practice some drivers would not be called upon for long periods to perform any such work.’”
Id.
(citing 29 C.F.R. § 782.2(c)(1) and
Morris v. McComb,
332
In
Brooks v. Halsted Communications, Ltd.,
In short, according to Defendants, prior to passage of the TCA in 2008, one vehicle over 10,000 pounds, regularly (though not necessarily frequently) used in interstate commerce to transport people or property, could vaccinate an employer from the obligation to pay FLSA overtime to the entire body of its drivers.
Id. at 199.
The plaintiffs in Brooks argued:
When SAFETEA-LU reduced the power of the Secretary of Transportation to reach only commercial motor carriers it necessarily also reduced the scope of the Secretary’s power over employees, so that (as explicitly defined in [49 U.S.C.] section 31132(2)) it only reached “an operator of a commercial motor vehicle.”
Id. at 200. The court noted the plaintiffs’ emphasis on the inconsistency of the defendants’ citing “49 U.S.C. § 31132(1) for the definition of ‘commercial motor vehicle’ in order to establish their entitlement to the exemption, while ignoring the very next provision of this section — 31132(2)— which defines ‘employee’ as ‘an operator of a commercial motor vehicle....’” Id.
In holding in the plaintiffs’ favor the court quoted from a DOL field bulletin:
“with the passage of SAFETEA-LU on August 10, 2005, an employee is covered by the [MCA exemption] only if that employee is engaged in transportation involving a ‘commercial motor vehicle.’ ” See U.S. Dep’t of Labor, Wage & Hour Division, Field Assistance Bulletin No. 2007-2.
Id.
The court recognized that in this context DOL bulletins' — as opposed to DOT’S bulletins — are entitled to diminished interpretive weight, but noted they should be still be considered.
17
The court pointed to two
In
Brooks,
no driver operated a commercial motor vehicle or was ever likely to do so. In discussing “whether a ‘hybrid’ motor
carrier
— i.e., one with drivers operating vehicles weighing both above and below 10,000 pounds-was obliged to pay FLSA overtime to its drivers of lighter vehicles before June 6, 2008,” the court cited decisions which addressed the issue.
Brooks,
The court in
Brooks
factually distinguished decisions potentially supporting the defendants’ focus on an employer’s fleet.
See Collins v. Heritage Wine Cellars, Ltd.,
No. 07-CV-1246,
[that] meant ... the court was blind to Congress’ recent approval of precisely this dual regime. Starting in June 2008, all employers in the motor carrier industry were required to distinguish for purposes of compensation between employees who operated light vehicles and those operating commercial vehicles.
Brooks,
Frito-Lay relies heavily upon
Mayan
in arguing that an individual employee’s activities are irrelevant. Defendant con
In Mayan, the district court considered whether the SAFETEA-LU altered which motor carrier employees were properly categorized as exempt under the FMCE. The court focused on the plain language of the SAFETEA-LU statute and concluded that SAFETEA-LU only altered which employers would be considered motor carriers, and made no changes to the definition of employees under the law. As a result, the court determined that the employee plaintiffs continued to be covered by the FMCE after the enactment of SAFETEA-LU, and were not entitled to any OT compensation under either the FLSA or the PMWA, regardless of the size of the trucks they drove.
In
Mayan
the court noted that few courts that had considered the issue at that time, but of those that had, the majority of courts ruled inapposite to the court’s holding in
Mayan.
18
The majority of courts considered both the employer’s status as a motor carrier and the character of the employee’s job responsibilities.
See Miller v. Prof'l Transp., Inc.,
No. 3:09-cv-0111,
This court finds persuasive the rationale of the majority of other district courts which addressed the issue raised here and concludes that under SAFE-TEA-LU an employee’s activities are considered in determining whether or not he or she is subject to the authority of the Secretary of Transportation and therefore exempt under the PMCE from OT compensation requirements of the PMWA. Post-SAFETEA-LU, but pre-TCA, an analysis of each individual employee’s activities is required to determine whether an employee was subject to the jurisdiction of the Secretary of Transportation. With the exception of Cerutti, the record is not sufficiently developed for the court to reach any conclusion about whether plaintiffs never had to drive a truck with a gross vehicle weight over 10,000 pounds or whether they had some responsibility to do so. Except for Cerutti, who the parties agreed drove a truck with a GVWR of more than 10,000 pounds, defendant did not carry its burden on partial summary judgment on this issue for the period from April 26, 2006 until the date of the enactment of the TCA on June 6, 2008. Summary judgment will be granted in favor of defendant on this issue only with respect to the claim of Cerutti.
c. PMCE After June 6, 2008
As discussed above, on June 6, 2008, the TCA restored the jurisdiction of the federal Secretary of Transportation over employees of motor carriers who drive vehicles with a GVWR of less than 10,-001 pounds. The impact of this change upon plaintiffs was to restore their exempt status under the PMCE, while their nonexempt status under the FMCE was maintained due to a note providing that employees driving vehicles under 10,001 pounds remained covered under the OT compensation provisions of the FLSA. As noted supra, the PMCE provides in relevant part:
(b) Employment in the following classifications shall be exempt from both the minimum wage and overtime provisions of this act ...
(7) Any employee of a motor carrier with respect to whom the Federal Secretary of Transportation has power to establish qualifications and maximum hours of service under 49 U.S.C. § 3102(b)(1) and (2) (relating to requirements for qualifications, hours of service, safety and equipment standards).
43 Pa.Stat.Ann. § 333.105(b)(7) (emphasis added).
As a matter of statutory construction, this court applying Pennsylvania law is bound to follow the law the Pennsylvania
Here, the plain language of the PMCE unambiguously indicates that any employee over whom the federal Secretary of Transportation has the power to establish qualifications and maximum hours of service is exempt from both the minimum wage and OT provisions of the PMWA. This court cannot circumvent the PMWA by adding a note like that added in the TCA with respect to the applicability of the FLSA. See Id. (“We are not free to ignore the clear language of a Pennsylvania statute merely because by rewriting the statute we arguably would act consistently with a legislative policy.”).
With respect to the FMCE, the exemption is based upon the jurisdiction of the Secretary of Transportation, i.e., “any employee with respect to whom the [Secretary of Transportation] has power to establish qualifications and maximum hours of service” pursuant to the provision of section 31502 of Title 49. 29 U.S.C. § 213(b)(1); 49 U.S.C. § 31502(b)(1) (employees of a motor carrier). The FMCE, however, is impacted by the additional provision of § 306(a) and (c) of the TCA, which carved out a limitation under the FLSA for the OT compensation exemption, providing in relevant part:
(a) APPLICABILITY FOLLOWING THIS ACT. — Beginning on the date of enactment of the Act [the TCA], section 7 of the Fair Labor Standards Act of 1938 (29 U.S.C. 207) shall apply to a covered employee notwithstanding section 13(b)(1) of that Act (29 U.S.C. 213(b)(1) [the FMCE],
Pub.L. No. 110-244, 122 Stat. 1572 § 306(a) (emphasis added). The phrase “covered employee” is defined in the TCA as an individual:
(1) who is employed by a motor carrier or motor private carrier (as such terms are defined by section 13102 of title 49, United States Code, as amended by section 305);
(2) whose work, in whole or in part, is defined-
(A) as that of a driver, ...; and
(B) as affecting the safety of operation of motor vehicles weighing 10,000 pounds or less in transportation on public highways in interstate or foreign commerce, ....
Id.
§ 306(c)(1), (2)(A)(B). This additional limitation is not applicable to the PMCE because an employee’s status under the PMCE turns solely on the jurisdiction of the Secretary of Transportation. Therefore, upon enactment of the TCA, plaintiffs were once again exempt under the PMCE, even though they may not be exempt under the FMCE. As a matter of Pennsylvania statutory construction, federal courts must apply the Pennsylvania law and cannot change it to reflect perceived legislative policy.
Barshak,
3. Fluctuating Workweek
Frito-Lay argues that even if plaintiffs were found to be nonexempt employees under the PMWA for all or part of the limitations period, it properly compensated them for all OT hours worked under the FWW method. Frito-Lay maintains the FWW method is permissible under the PMWA, pursuant to the PMWA regulation set forth in 34 Pa.Code § 231.43(d). To calculate OT on the salary portion, Frito-Lay utilizes the federal regulation set forth in 29 C.F.R. § 778.114. 19
Frito-Lay maintains the FWW method is utilized in nearly every state, including Pennsylvania. Defendant alleges that under the FWW method an employee’s “regular rate” for purposes of calculating OT fluctuates on a weekly basis based upon the actual number of hours worked during a workweek, as opposed to the standard forty hours. Defendant divides the weekly salary by the total number of hours worked, resulting in a “regular rate” that is considered the straight-time compensation for all hours worked during that week.
With respect to commissions, the parties agree that plaintiffs receive a salary plus commissions. Frito-Lay alleges with respect to a nonexempt employee who receives commissions on a weekly basis, the federal regulations require that commissions be added to the employee’s other earnings for that week for purposes of determining the employee’s regular rate. 29 C.F.R. §§ 778.118, 778.119. It relies upon
Lance v. Scotts Lawn Service, Inc.,
No. 04-5270,
Frito-Lay argues it properly calculates plaintiffs’ OT compensation by including their base salary and any commissions attributable to that week in calculating the
Frito-Lay asserts that the FWW method is permissible under the PMWA. Frito-Lay relies upon
Evans v. Lowe’s Cos., Inc.,
Civ. A. No. 3:03-cv-0438,
Plaintiffs argue that defendant’s FWW method of compensating plaintiffs for OT work is not permitted by the PMWA because it does not comport with the general OT rule of the PMWA set forth in 34 Pa.Code § 231.41. Plaintiffs are not paid a flat sum for a day’s work or paid a flat sum for a particular job, pursuant to 34 Pa.Code § 231.43(b). Plaintiffs agree that defendant’s method of paying OT compensation at the rate of one-half plaintiffs’ regular rate of pay is permitted under section 231.43(b), but disagree that it is permitted under section 231.43(d)(3). Plaintiffs argue that under section 231.43(d)(3), Frito-Lay is obligated to pay plaintiffs at the rate of one and one-half of their regular pay. Plaintiffs rely upon
Friedrich,
Plaintiffs assert defendant does not comport with the requirements of section 231.43(d)(3) because the basic rate is not established by agreement or understanding before the work is commenced. The parties agree that commissions are factored into plaintiffs’ basic rates of pay. Because the commissions are not paid until after the fact, plaintiffs argue that de
Plaintiffs rely upon
Turner v. Mercy Health System,
2010 Phila. Ct. Com. PI. LEXIS
Upon review of 34 Pa.Code § 231.43(d) in its entirety, there is no exception to the definition of workweek, nor is there an exception to the requirement that employees who work more than 40 hours during the workweek are entitled to at least one and a half times their regular rate. The fact that there is an agreement between Turner and his class members and Defendants that sets forth a regular rate and sets forth the 8-80 Period does not mean that Defendants are not required to pay one and a half times the regular rate to employees who work more then [sic] forty hours during the workweek. 34 Pa.Code § 231.43(d) does not permit employers and employees from agreeing to violate the MWA. In fact, the language of 34 Pa.Code § 231.43(d) makes it clear that overtime pay for hours work in excess of forty in ■a workweek is required. Defendants’ arguments must fail.
Turner, 2010 Phila. Ct. Com. PI. LEXIS 146, at *13.
In Pennsylvania, an employer shall be deemed to not have violated the OT compensation provisions of the PMWA if the employer meets provisions of 34 Pa.Code § 231.43, which provides in relevant part:
§ 231.43. Regular rate.
For purposes of these §§ 231.41-231.43 (relating to overtime pay), the regular rate at which an employee is employed shall be deemed to include all remuneration for employment paid to or on behalf of the employee, but it shall not be deemed to include the following: ...
(7) Extra compensation provided by a premium rate paid to the employee in pursuance of an applicable employment contract or collective bargaining agreement for work outside of the hours established in good faith by the contract or agreement as the basic, normal or regular workday not exceeding 8 hours or workweek not exceeding the maximum workweek applicable to the employee under § 231.41 (relating to rate), where the premium rate is not less than 1 1/2 times the rate established in good faith by the contract or agreement for like work performed during the workday or workweek.
(b) If the employee is paid a flat sum for a day’s work or for doing a particular job without regard to the number of hours worked in the day or at the job and if he receives no other form of compensation for services, his regular rate is determined by totaling all the sums received at the day rates or job rates in the workweek and dividing by the total hours actually worked. He is then entitled to extra half-time pay at this rate for hours worked in excess of 40 in the workweek....
(d) No employer may be deemed to have violated these §§ 231.41-231.43 by employing an employee for a workweek in excess of the maximum workweek applicable to the employee under § 231.41 if, under an agreement or understanding arrived at between the employer and the employee before performance of the work, the amount paid
(3) Is computed at a rate not less than 1 1/2 times the rate established by the agreement or understanding as the basic rate to be used in computing overtime compensation thereunder; and if the average hourly earnings of the employee for the workweek, exclusive of payments described in subsection (a)(l)-(7), are not less than the minimum hourly rate required by applicable law and if extra overtime compensation is properly computed and paid on other forms of additional pay required to be included in computing the regular rate.
34 Pa.Code § 231.43(b), (d)(3) (emphasis added).
Section 231.43(d)(3) clearly requires that OT pay be computed at “Vh times” the rate established by the agreement or understanding. Id. Under a plain reading of that regulation, Frito-Lay cannot have it both ways. Frito-Lay concedes that it paid plaintiffs pursuant to 34 Pa.Code § 231.43(d). If so, it cannot comply with that section without paying plaintiffs at an OT rate of one and one-half times the plaintiffs’ regular rate. Therefore, the court need not predict whether Pennsylvania courts would recognize the FWW method of OT payment. Similarly, the court need not consider communications from the Pennsylvania Department of Labor and Industry, discussing whether Pennsylvania law would recognize the FWW.
V. Conclusion
Prior to April 26, 2006, the parties do not dispute that plaintiffs were exempt from the PMWA under the PMCE. It is also undisputed that as of April 26, 2006, all plaintiffs, with the exception of Cerutti, drove Frito-Lay vehicles with a GVWR of 10,000 pounds or less. It, however, is unclear, whether those plaintiffs were subject to being required to drive a vehicle with a GVWR over 10,001 pounds. Therefore, for the period from April 26, 2006 until June 6, 2008 — the date of enactment of the TCA — discovery may be needed to permit the record to be fully developed concerning whether those employees were subject to the exemption. Summary judgment must be granted in defendant’s favor at least against Cerutti because it is undisputed she drove trucks over 10,001 pounds. 22
For the period after the enactment of the TCA — June 6, 2008 — the PMCE applies to plaintiffs because that law restored their status as employees who were subject to the authority of the Secretary of Transportation. They fall within the statutory language of the PMCE. To the extent the Pennsylvania legislature wants to follow the FLSA exemption set forth in § 306 of the TCA, the Pennsylvania legislature must change the law. This court cannot legislate.
With respect to whether Frito-Lay’s method of compensating plaintiffs according to the FWW would be lawful in Pennsylvania, the court finds this question is irrelevant because Frito-Lay’s OT payment to plaintiff in the amount of one-half times their regular pay for hours worked over forty in a week does not comport with either 34 Pa.Code § 231.43(b) or (d)(3).
Frito-Lay’s Motion must be denied in part and granted in part because: 1) the PMCE incorporates amendments to the federal MCA relating to employees over whom the Secretary of Transportation has authority to regulate qualifications and
Notes
. The factual background is derived from the consolidated statement of undisputed material facts ("SF”). (ECF No. 34.)
. Neither party waived its right to submit evidence and argument on any factual issues, including facts supporting the requirements of the PMCE and the FWW method. Defendant submits that such evidence or argument is not relevant for purposes of the Motion.
.Frito-Lay alleges that because plaintiffs did not support their responses to defendant’s undisputed statement of material facts with citations to the record, as required by the local rules of the District Court for the Western District of Pennsylvania, defendant’s version of the material facts is to be considered as undisputed by plaintiffs. Defendant is correct. W.D. Pa. LCvR.56C.l.b (referring to LCvR.56B.l).
. Frito-Lay does not address a specific statute of limitations period. The applicable statute of limitations under the PMWA is three years.
See Gonzalez
v.
Bustleton Servs., Inc.,
Civ. A. No. 08-4703,
. Initially, the Interstate Commerce Commission ("ICC”) was charged with enforcing the MCA.
Mayan v. Rydbom Express, Inc.,
Civ. A. No. 07-2658,
.“Three years before the passage of the FLSA, Congress enacted the Motor Carrier Act to promote efficiency and safety in interstate motor transportation.”
Morrison v. Quality Transps. Servs., Inc.,
. The word ''employee” is spelled "employe” throughout the PMWA.
. Former § 3102 is currently codified at 49 U.S.C. § 31502.
. Only employees of a motor carrier whose duties in interstate activities affect the “safety of operation” are exempt under the FMCE.
Friedrich,
. § 395.3 Maximum driving time for property-carrying vehicles.
(a) No motor carrier shall permit or require any driver used by it to drive a property-carrying commercial motor vehicle, nor shall any such driver drive a property-carrying commercial motor vehicle:
(1) More than 11 cumulative hours following 10 consecutive hours off-duty;
(2) For any period after the end of the 14th hour after coming on duty following 10 consecutive hours off duty, except when a property-carrying driver complies with the provisions of § 395.l(o) or § 395.1(e)(2).
49 C.F.R. § 395.3.
.
See Miller v. Prof'l Transp., Inc.,
No. 3:09—cv-0111,
. Codified in 1990 at § 3102. In 1994, § 3102 was amended generally, restated without substantive change and renumbered at § 31502. Pub.L. No. 103-272. (1994).
. Including the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users ("SAFETEA-LU”), Pub.L. No. 109-59, 119 Stat. 1144 (2005), and the SAFETEALU Technical Corrections Act ("TCA”), Pub.L. No. 110-244, 122 Stat. 1572 (2008).
.
See
2B NORMAN J. SINGER, SUTHERLAND STATUTORY CONSTRUCTION § 51:8 (7th ed. 2008) (citing
McKinney v. Foster,
.
See Brown v. Ford Storage and Moving Co., Inc.,
. The issue before the court in
Vidinliev
was predicated upon whether or not the individual employees made interstate trips. The court distinguished between focusing upon the employers' fleet and the character of the employees’ job responsibilities.
Vidinliev,
.
Dauphin
v.
Chestnut Ridge Transp., Inc.,
.
See Mayan,
. 29 C.F.R § 778.114, related to the federal method of calculating OT under circumstances where an employee is paid a fixed salary for fluctuating hours, provides in relevant part:
(a) An employee employed on a salary basis may have hours of work which fluctuate from week to week and the salary may be paid him pursuant to an understanding with his employer that he will receive such fixed amount as straight time pay for whatever hours he is called upon to work in a workweek, whether few or many. Where there is a clear mutual understanding of the parties that the fixed salary is compensation (apart from overtime premiums) for the hours worked each workweek, whatever their number, rather than for working 40 hours or some other fixed weekly work period, such a salary arrangement is permitted by the Act if the amount of the salary is sufficient to provide compensation to the employee at a rate not less than the applicable minimum wage rate for every hour worked in those workweeks in which the number of hours he works is greatest, and if he receives extra compensation, in addition to such salary, for all overtime hours worked at a rate not less than one-half his regular rate of pay. Since the salary in such a situation is intended to compensate the employee at straight time rates for whatever hours are worked in the workweek, the regular rate of the employee will vary from week to week and is determined by dividing the number of hours worked in the workweek into the amount of the salary to obtain the applicable hourly rate for the week. Payment for overtime hours at one-half such rate in addition to the salary satisfies the overtime pay requirement because such hours have already been compensated at the straight time regular rate, under the salary arrangement.
29 C.F.R. § 778.114(a).
. The PLLCD is the division of the Pennsylvania Department of Labor & Industry that interprets and enforces Pennsylvania's laws regulating the employer and employee relationship. See http://www.portal.state.pa.us/ portaVserver.pt/community/labor_law_ complainace/10515
. In
Evans,
the court considered whether the employer’s compensation plan was appropriate with respect to the liability exception enumerated in 34 Pa.Code § 231.43(d).
Evans,
. Plaintiffs' allegation that defendant failed to record accurately all the hours worked by plaintiffs was not addressed by defendant and is not addressed in this opinion.
