Court Opinion

ID: 9487249
Source: CourtListenerOpinion
Date Created: 2023-08-05 12:11:49.367289+00
Date Added: 2024-06-11T17:52:10.129063
License: Public Domain

FARRIS, Circuit Judge,
dissenting:
As I understand it, the central question is whether American Driver Service, Inc., a seasonal carrier, should be judged on the same basis as year-round carriers. Because I am of the opinion that to do so would be “unreasonable,” I respectfully dissent.
American Driver argues that it is exempt from the maximum hours requirements of the Fair Labor Standards Act, 29 U.S.C. § 207, because it is a motor contract carrier subject to the jurisdiction of the Secretary of Transportation. The district court determined that American Driver is exempt from FLSA’s maximum hours provisions. There is no material question as to the fact that American Driver is a motor contract carrier engaged in interstate commerce whose drivers all have a reasonable expectation that they will engage in interstate commerce. There is evidence that American Driver actually engaged in interstate commerce a “reasonable time prior to the time at which [the Secretary of Transportation’s] jurisdiction [came] into question.” The opinion of the district court should be affirmed.
*1158Congress has stated that “[t]he provisions of [the Fair Labor Standards Act, 29 U.S.C. § 207] shall not apply with respect to any employee with respect to whom the Secretary of Transportation has power to establish qualifications and maximum hours of service pursuant to the provisions of section 304 of Title 49....” 29 U.S.C. § 213(b)(1).1 The Secretary of Transportation has the authority to prescribe the qualifications and the maximum hours of service or employees of “motor carriers.” 49 U.S.C. § 3102(b). Under 49 U.S.C. § 10102(13) a “motor carrier” can be either a “motor contract carrier” or a “motor common carrier.” A “motor contract carrier” is defined as a “person providing motor vehicle transportation of property for compensation under continuing agreements with one or more persons.” 49 U.S.C. § 10102(15)(B).
In order to be considered a motor contract carrier, and therefore exempt from the maximum hours requirements of FLSA, a corporation need not have all of its drivers actually undertake trips across state lines, but rather, all of its drivers must have a reasonable expectation that they will engage in interstate commerce. Morris v. McComb, 332 U.S. 422, 434, 68 S.Ct. 131, 136-37, 92 L.Ed. 44 (1947). All of its drivers can be said to have a reasonable expectation of engaging in interstate commerce if the carrier’s work is “shared indiscriminately,” that is, if it is apportioned in such a way as to ensure that all drivers are likely to engage in interstate commerce. Id. at 433, 68 S.Ct. at 136; Marshall v. Aksland, 631 F.2d 600, 602 (9th Cir.1980); Brennan v. Schwerman Trucking Co., 640 F.2d 1200, 1205 (4th Cir.1976).
It is undisputed that American Driver is a motor contract carrier that has engaged in some interstate commerce. It is also undisputed that the manner in which American Driver assigns its work, first in/first out, is an indiscriminate system of apportioning work as contemplated in Morris v. McComb and Brennan v. Schwerman Trucking. Thus, the only question remaining is whether American Driver has established that all of its drivers were in a position to be called upon to drive in interstate commerce and therefore subject to the jurisdiction of the Department of Transportation during the periods that the Department of Labor claims it failed to pay overtime as required under the FLSA.
The Federal Highway Administration, which acts under the authority of the Department of Transportation, has published its opinion as to what evidence is required to establish that a driver is in a position to be called upon to drive in interstate commerce as part of the driver’s regular duties. 46 Fed.Reg. 37902, 37903 (1981). The Federal Highway Administration’s interpretation of its own jurisdiction is entitled to deference. Jones v. Giles, 741 F.2d 245, 249 (9th Cir.1984).
The FHWA’s interpretation provides that “in order to establish jurisdiction under 49 U.S.C. 304, the carrier must be shown to have engaged in interstate commerce within a reasonable period of time prior to the time at which jurisdiction is in question.” 46 Fed. Reg. at 37903.2 Once the carrier establishes that it had engaged in interstate commerce, jurisdiction under the FHWA is extended “for a 4r-month period from the date of the proof.” Id. Thus, based on the Administration’s interpretation, American Driver will be considered subject to the jurisdiction of the FHWA if it engaged in interstate commerce within a “reasonable period of time prior to the time at which jurisdiction is in question.” Id. (emphasis added).
American Driver Service contends that what constitutes a “reasonable” time period can only be interpreted on a case by case basis. I agree. The term “reasonable” can only be understood on a ease by case basis. See Black’s Law Dictionary 1265 (6th ed. 1990) (Reasonable is defined as “fair, proper, just, moderate, suitable under the circumstances.”).
American Driver operated on a seasonal basis. Thus, the fact that American Driver did not engage in interstate commerce for six to eight months prior to the season during which it did engage in interstate commerce does not mean it did not engage in interstate *1159commerce a reasonable time prior to the time at which jurisdiction is in question. The record shows that American Driver engaged in interstate commerce at the close of all of the seasons in question and then again some time after the start of each new season that followed. Viewing American Driver in terms of the periods of time that it was actually in operation, the gaps during which its drivers were not engaged in interstate commerce were relatively short. For a year-round carrier, such gaps would not result in the carrier’s being subject to the FLSA. See 46 Fed.Reg. 37903 (jurisdiction under the FHWA is extended “for a 4-month period from the date of the proof [that the carrier engaged in interstate commerce]”).
In light of the seasonal nature of American Driver’s operations, there is evidence that American Driver actually engaged in interstate commerce a “reasonable time prior to the time at which [the Secretary of Transportation’s] jurisdiction [came] into question.” The opinion of the district court should be affirmed. The district court’s holding that the issue of Roberts’ liability is moot should also be affirmed in light of the fact that American Driver Service is exempt from the maximum hour requirements of the FLSA.

. 49 U.S.C. § 304 was repealed and revised as 49 U.S.C. § 3102(b).

. The full text of the FHWA's interpretation is included in the majority opinion at page 1156.