Interstate Exemption Shields Trucker Shuttles From Overtime, Says Seventh Circuit

Trucking Image ### Trucker Shuttle Runs Dodge Wage Law Thanks to Interstate Exemption

The Seventh Circuit Court of Appeals ruled that Laci Transport Inc. is exempt from federal overtime pay rules under the Motor Carrier Act for drivers shuttling goods between off-site lots and Amazon facilities in Illinois. The court affirmed dismissal of wage claims by drivers Renee Stingley and Martaneze Johnson, who alleged unpaid overtime. This keeps such “last leg” intrastate hauls out of Fair Labor Standards Act (FLSA) protections.

The case ignited when Stingley, Johnson, and others sued Laci Transport, a trucking firm hauling for Amazon, claiming they were shorted overtime for shuttle runs within Illinois—from staging lots to fulfillment centers. These weren’t long-haul trips but short hops where trailers full of interstate goods waited before final delivery. The drivers argued these purely intrastate moves qualified them for FLSA overtime, since the Motor Carrier Act (MCA) exemption only shields “interstate” commerce.

The key legal question: Does the MCA exemption cover intrastate shuttle runs if the goods are part of a continuous interstate journey? Judge Ilana Diamond Rovner, writing for the panel, said yes—affirming the district court. The MCA broadly exempts motor carriers engaged in interstate transport, and courts look at the “totality” of the shipment’s path. Here, goods originated out-of-state, hit Illinois staging lots, got shuttled locally, then delivered—never breaking the interstate chain. No FLSA overtime required.

For truckers and fleet owners, this ruling is a green light: Short intrastate legs in bigger interstate supply chains stay MCA-exempt, slashing overtime liability. Logistics pros hauling for giants like Amazon can keep staging efficiencies without wage lawsuits piling up, stabilizing costs in tight-margin freight ops.

**Bottom Line:** Intrastate shuttles in interstate flows dodge overtime pay rules.

https://www.courtlistener.com/opinion/10832068/renee-stingley-v-laci-transport-inc/

How’s your fleet handling these staging-to-facility runs—overtime or exempt?

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