A group of bus and trolley operators sought overtime wages from the Southeastern Pennsylvania Transportation Authority (SEPTA) for duties performed before their shifts.

What happened. Before beginning their scheduled runs each day, the operators were required to complete a series of reporting tasks, including checking in with the dispatcher, collecting and punching passenger transfers, filling out forms and waybills, and checking updates, routes, and conditions. The tasks took approximately 10 minutes to complete. In addition, the operators were required to perform inspections that took approximately 15 minutes to complete.

The operators were covered by three similar collective bargaining agreements (CBAs). Two of the CBAs provided an allowance of 15 minutes of pay for preshift duties, while the third provided 12 minutes of pay. All the CBAs provided that preshift allowances were excluded from overtime and required employees to submit disputes to arbitration.

The operators filed a class action lawsuit claiming unpaid overtime under the Fair Labor Standards Act (FLSA). A district court dismissed the charges, finding that the operators’ claim hinged on interpretation of the underlying CBA and was, therefore, subject to CBA’s prescribed grievance and arbitration process. The operators appealed.

What the court said. The 3rd Circuit Court of Appeals, which covers Delaware, New Jersey, and Pennsylvania, overturned the lower court’s ruling, finding that the operators’ FLSA claim was not dependent on the terms of their CBAs. “[T]he operators do not contend that they are entitled to additional payment under a CBA,” the court found. “Neither do they contend that SEPTA fails to compensate them in the amounts set forth in the CBAs for time spent performing their duties prior to the scheduled starting time.

“Indeed, the Operators do not allege that SEPTA has violated the terms of the CBAs in any way. Rather, they argue, their FLSA claim exists independently of any rights they have under their respective CBAs: (1) they are not fully compensated for approximately fifteen minutes spent performing … inspections; and (2) their pre-trip responsibilities … are not included in the calculation of overtime.”

The court concluded that the operators made a valid claim that they were being paid “for only 12 or 15 minutes of 25 minutes of compensable work, none of which is calculated when assessing overtime.” The case was remanded for trial. Bell v. Southeastern Pennsylvania Transportation Authority, 3rd Circuit, No. 12-4031 (8/19/2013).

Point to remember. With few exceptions, the FLSA requires that employees be paid for all time spent performing work-related tasks before and after shifts.