A local bus company makes its money by transporting passengers to and from the local train station and to bus depots, where they catch interstate buses. The company runs no buses outside state lines but is strictly local. Nevertheless, the company is regulated by the U.S. Department of Transportation. The FLSA exempts interstate transportation activities.

The local bus company admits it never pays its drivers overtime compensation when they exceed forty hours of work in a week. But it argues that it is exempt because it is engaged in interstate transportation.

Do you agree? See United Transportation Local Union 759 v. Orange Newark Elizabeth Bus, Inc.

[111 F.Supp.2d 514 (D.N.J. 2000)].