Taxi cab drivers exempt from overtime under the FLSA

Most employees who receive hourly pay are covered by the Fair Labor Standards Act (FLSA), which means they are owed additional pay for overtime hours worked and minimum wage for all of their time attendance.

There are exemptions for employees who receive a salary of no less than $455 per week and fill certain positions, such as those who are executives, outside sales employees, skilled computer workers, professionals and administrative staff members.

In addition, there are a variety of provisions that affect employees across a number of fields, including tax drivers. Under the FLSA, taxi cab drivers and other transportation employees who drive locally and receive pre-approved fare rates must receive at least minimum wage for all of their employee attendance, but they are not subject to overtime pay. The exemption also applies to some railroad and air carrier employees, seamen on American vessels and local delivery drivers.

However, taxi companies must be careful with their payroll practices, because any employees who are not actually driving vehicles are subject to overtime pay, according to Lawyers.com. To ensure workers receive the proper wages for their hours worked, employers can use a timekeeping system that calculates multiple pay rates.