Ray Marshall, Secretary of Labor, United States Department of Labor, Plaintiff v. Union Pacific Motor Freight Company, a Corporation

The Secretary of Labor seeks to enjoin Union Pacific Motor Freight Company from failing to pay past and future overtime compensation to its dispatchers. The Secretary contends that Union Pacific’s failure to pay overtime violates section 7 of the Fair Labor Standards Act, 29 U.S.C. § 207 (a)(1). He also contends that the violation was “willful” and that the three year statute of limitations applies. 29 U.S.C. § 255 (a). Union Pacific argues that its dispatchers’ duties affect the safety of operation of vehicles used in interstate commerce and that its dispatchers are subject to regulation by the Secretary of Transportation under section 4 of the Motor Carrier Act, 49 U.S.C. § 304 , and therefore exempt from the overtime provisions of the Fair Labor Standards Act under 29 U.S.C. § 213 (b)(1). Union Pacific also contends that even if its dispatchers are not exempt from the overtime provision of the Fair Labor Standards Act, the failure to pay overtime compensation was not “willful” and any recovery should be subject to the two rather than the three year statute of limitations.

The district court found that Union Pacific’s dispatchers are exempt from the overtime provisions of the…