Court Rules Freight Brokers Are Non-Exempt
A recent federal district court decision highlights the danger of classifying freight brokers as exempt from the payment of overtime. In Robert Hendricks v. Total Quality Logistics, LLC, the court held that TQL’s Logistics Account Executives should be classified as non-exempt from the payment of overtime because:
- They were primarily involved in the production of the very service TQL provides rather than the overall management of business operations; and
- They did not exercise sufficient discretion and independent judgment.
While there have been several prior lawsuits attacking the exempt classification of freight brokers (most resulting in settlement), this recent ruling is perhaps the most comprehensive published opinion on this subject and is likely to prompt additional lawsuits and wage claims.
A quarterly newsletter of legal news for the clients and friends of Scopelitis, Garvin, Light, Hanson & Feary
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.
Court Rules Freight Brokers Are Non-Exempt
A recent federal district court decision highlights the danger of classifying freight brokers as exempt from the payment of overtime. In Robert Hendricks v. Total Quality Logistics, LLC, the court held that TQL’s Logistics Account Executives should be classified as non-exempt from the payment of overtime because:
- They were primarily involved in the production of the very service TQL provides rather than the overall management of business operations; and
- They did not exercise sufficient discretion and independent judgment.
While there have been several prior lawsuits attacking the exempt classification of freight brokers (most resulting in settlement), this recent ruling is perhaps the most comprehensive published opinion on this subject and is likely to prompt additional lawsuits and wage claims.
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.