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Bill proposes overtime pay for 2.1M truckers

Bill proposes overtime pay for 2.1M truckers

Legislators from both parties have proposed a new bill aimed at ensuring America's 2.19 million truck drivers receive overtime pay.

Bill proposes overtime pay for 2.1M truckers

Legislators from both parties have proposed a new bill aimed at ensuring America's 2.19 million truck drivers receive overtime pay.

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Bill proposes overtime pay for 2.1M truckers

Legislators from both parties have proposed a new bill aimed at ensuring America's 2.19 million truck drivers receive overtime pay.

The proposal seeks to amend a 1938 law, which, while establishing minimum wage and overtime for most workers, left truck drivers out. This bill, presented in both the House and Senate, aims to remove the exemption for motor carriers from the 1938 law.

As part of a broader analysis of the U.S. freight sector, the Biden administration, in a February 2022 report, recommended Congress to grant truck drivers overtime pay. Earlier, in April 2022, a Democratic legislator introduced a similar bill to secure overtime for truckers, but it didn't progress.

This latest initiative is led by two Democratic senators and a bipartisan pair of House members. However, the bill's journey is far from over, facing committee assessments and potential votes in the full House and Senate. The current Congress is divided, with Republicans leading the House and Democrats controlling the Senate.

The proposed legislation could result in higher earnings for truck drivers but may pressure employers. According to experts writing for Overdrive magazine, truck drivers, who are typically paid by the mile, would benefit, but employers might face challenges. Federal rules restrict truck drivers to specific driving hours, and they're often unpaid for time spent at warehouses.

High turnover rates in large trucking firms, averaging 94% between 1995 and 2017 at major carriers, are often attributed to broader industry issues. Yet, some argue low pay is a key factor.

Michael Belzer, a professor at Wayne State University, highlighted the retention issue in the industry, pointing out the dissatisfaction arising from being underpaid for long hours.

Research indicates that better pay for truckers can lead to fewer accidents. Additionally, compensating for usually unpaid waiting times at warehouses could enhance safety and supply chain efficiency.

While trucker and safety advocacy groups have welcomed the bill, the American Trucking Associations (ATA) have criticized it, warning of potential supply chain disruptions and inflationary effects on consumers.

The ATA's CEO, Chris Spear, described the bill as a ploy to increase legal fees, potentially reducing drivers' income and eliminating jobs by disrupting longstanding pay structures. These structures have reportedly sustained family incomes and supported the U.S. supply chain for 85 years.

In 2022, according to the Bureau of Labor Statistics, the median salary for heavy and tractor-trailer truck drivers was $49,920. However, ATA data shows that in 2021, the average pay for truckload drivers was around $70,000 before benefits.

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