Truck drivers are essential to California’s economy, moving goods across the state and throughout the country. But when it comes to wage and hour compliance, trucking employers face one of the most complex regulatory landscapes. Both federal and state laws apply—and sometimes conflict—making compliance a high-stakes challenge.

This post breaks down the rules, highlights key differences between federal and California law, and offers practical guidance for trucking employers.

Federal Laws Governing Truck Drivers

Truck drivers operating across state lines are subject to federal regulations that often intersect with California’s wage and hour laws, creating a complex compliance landscape.

The Fair Labor Standards Act (FLSA) sets minimum wage and overtime standards, but its Motor Carrier Exemption (29 U.S.C. § 213(b)(1)) excludes drivers affecting the safety of motor vehicles in interstate commerce—such as those crossing state lines or hauling goods for out-of-state delivery—from federal overtime rules. This exemption doesn’t apply to non-drivers (e.g., loaders) or drivers of vehicles under 10,001 pounds GVWR, who remain entitled to FLSA protections. For example, a driver like Maria, hauling freight from San Diego to Nevada, falls under the exemption, but a local delivery driver using a small van does not.

The Department of Transportation (DOT) also enforces Hours of Service (HOS) regulations (49 CFR Part 395) to ensure highway safety. Property-carrying drivers like Maria may not drive more than 11 hours within a 14-hour on-duty window after 10 consecutive hours off duty. They must take a 30-minute break after 8 hours of driving and may use a 34-hour restart to reset weekly limits. Short-haul drivers operating within 100 air miles have modified rules, such as a 12-hour on-duty window

 These federal rules often conflict with California’s stricter standards, requiring employers to carefully distinguish between interstate and intrastate operations to ensure compliance.

California Wage and Hour Laws for Truck Drivers

California’s robust wage protections apply to truck drivers unless preempted by federal law, creating a layered compliance challenge for employers.

Governed by Industrial Welfare Commission (IWC) Wage Order 9, non-exempt drivers are entitled to a minimum wage of $16.50/hour in 2025, per the Department of Industrial Relations. Overtime is required at 1.5 times the Regular Rate of Pay (RROP) for hours over 8 in a day or 40 in a week, and double time for hours over 12 in a day or 8 on the seventh consecutive day, per Labor Code § 510. For a driver making deliveries within Los Angeles, this means the employer must include performance bonuses in the RROP when calculating overtime, ensuring fair pay for long shifts.

Intrastate drivers—those operating solely within California—are entitled to meal and rest breaks under Wage Order 9.

• A 30-minute unpaid, duty-free meal break must start before the 5th hour for shifts over 5 hours, with a second meal break before the 10th hour for shifts over 10 hours.
• Additionally, 10-minute paid, duty-free rest breaks are required for every 4 hours worked or major fraction thereof (e.g., two breaks for an 8-hour shift), ideally in the middle of each period.
• Drivers must be relieved of duties during these breaks, free to leave the vehicle.

California also mandates paid sick leave (Labor Code § 246), accurate wage statements (Labor Code § 226), and expense reimbursements (Labor Code § 2802) for costs like fuel, tolls, vehicle maintenance, and cell phone use.

The passage of AB 5 (Labor Code § 2775) has reshaped driver classification. Under its ABC test, drivers are presumed employees unless they are:

1. Free from control.
2. Perform work outside the hiring entity’s usual business.
3. And operate an independent business.

Owner-operators with their own companies and multiple clients may qualify for the business-to-business exemption (Labor Code § 2776), but most drivers for trucking companies must be treated as employees, gaining access to these protections.

The Preemption Issue: Federal vs. State Rules

The interplay between federal and California wage and hour laws creates significant complexity, particularly for meal and rest breaks. In 2018, the Federal Motor Carrier Safety Administration (FMCSA) ruled that California’s break rules are preempted for property-carrying interstate drivers subject to HOS regulations (International Brotherhood of Teamsters v. FMCSA). This means a driver like Maria, hauling goods from Oakland to Nevada, follows federal HOS rules (e.g., a 30-minute break after 8 hours of driving) instead of California’s stricter meal and rest break requirements. However, this preemption doesn’t apply to passenger-carrying drivers or intrastate drivers like Juan, who makes local deliveries in Sacramento and must receive a 30-minute meal break before the 5th hour and 10-minute rest breaks per 4 hours, per Wage Order 9.

Importantly, the FLSA Motor Carrier Exemption doesn’t preempt California’s overtime or minimum wage laws. Even interstate drivers must earn at least $16.50/hour in 2025 and overtime per Wage Order 9, unless another exemption applies. Employers must carefully analyze each driver’s routes to determine whether federal or state rules govern, as misapplication can lead to costly violations.

Key Considerations for Employers

Navigating wage and hour compliance for truck drivers requires careful attention to the distinctions between interstate and intrastate operations, as well as employee classification.

• Interstate drivers (crossing state lines) are exempt from California’s meal and rest break rules due to the 2018 FMCSA preemption for property-carrying drivers under HOS regulations. However, they must still receive California’s minimum wage ($16.50/hour in 2025) and overtime (1.5x after 8 hours/day or 40 hours/week, double time after 12 hours/day or 8 on the seventh day), as the FLSA Motor Carrier Exemption doesn’t preempt state law.
• Intrastate drivers are fully subject to Wage Order 9’s break and overtime rules, ensuring duty-free breaks and fair pay for long hours.

Example: A driver hauling produce from Los Angeles to Phoenix falls under federal rules and is not entitled to California meal/rest breaks. A driver making local deliveries within Sacramento, however, is entitled to California’s stricter protections.

Employee vs. Independent Contractor Status

AB 5 has reshaped the trucking industry by making it harder to classify drivers as independent contractors. Under the ABC test, drivers are presumed to be employees unless the company can show they are free from control, perform work outside the usual business of the hiring entity, and operate as an independent business.

Example: A large trucking company hiring drivers to haul freight is unlikely to meet the ABC test, meaning those drivers must be treated as employees. By contrast, an owner-operator running their own logistics company with multiple clients may still qualify as an independent contractor.

Overtime Calculations

Even when drivers are exempt from FLSA overtime under the motor carrier exemption, California law may still require overtime pay. Employers must evaluate whether the driver’s work is interstate or intrastate and whether Wage Order 9 applies.

Expense Reimbursement

California law also requires reimbursement for necessary business expenses. For truck drivers, this often includes fuel advances, tolls, parking fees, and use of personal cell phones for dispatch.

Risks of Noncompliance

Non-compliance with California’s wage and hour laws for truck drivers can lead to severe consequences, particularly given the industry’s high visibility in wage disputes. For example, Central Valley Trucking, a Fresno-based company with 20 drivers, misclassified its intrastate drivers as independent contractors, failing to provide meal breaks or overtime. This led to a PAGA lawsuit, with penalties of $100 per employee per pay period for initial violations and $200 for subsequent violations, per Labor Code § 2699, totaling over $50,000 for a single year, plus back wages and legal fees. The financial strain forced the company to lay off staff, impacting morale and operations.

Violations like unpaid overtime, missed breaks for intrastate drivers, or unreimbursed expenses (e.g., fuel, tolls) can trigger class actions or PAGA claims, amplifying liability across entire fleets. The 2024 PAGA reforms (AB 2288, SB 92) offer relief, allowing small employers with fewer than 100 employees to cure violations within 33 days, potentially avoiding litigation. By prioritizing accurate pay, breaks, and classifications, employers can mitigate these risks and foster a fair workplace.

Best Practices for Transportation Employers

To ensure compliance with California’s complex wage and hour laws for truck drivers, employers should adopt these best practices:

1. Determine Driver Coverage: Identify interstate (FMCSA HOS rules) vs. intrastate (Wage Order 9) drivers to apply correct overtime and break rules.
2. Review Classification: Apply AB 5’s ABC test (Labor Code § 2775) and verify eligibility for the B2B exemption (Labor Code § 2776), consulting legal counsel.
3. Audit Pay Practices: Ensure drivers earn at least $16.50/hour in 2025, including waiting/non-driving time, and calculate overtime using the RROP, per Labor Code § 510.
4. Reimburse Expenses: Document and reimburse reasonable expenses (e.g., fuel, tolls, maintenance, cell phones), per Labor Code § 2802.
5. Update Policies: Develop written policies reflecting federal preemption for interstate drivers and California break rules for intrastate drivers, training managers accordingly.
6. Maintain Records: Keep wage statements, hours logs, break records (intrastate drivers), and expense reimbursements for 3 years (4 for PAGA claims), per Labor Code §§ 226, 1174.
7. Leverage PAGA Reforms: Use the 2024 PAGA reforms (AB 2288, SB 92) to cure violations promptly, reducing penalties for small employers.

Final Thoughts

Wage and hour compliance for truck drivers is uniquely complex because of the overlap between federal and state laws. The distinction between interstate and intrastate driving, along with AB 5’s contractor restrictions, means employers cannot take a one-size-fits-all approach.

Employers who stay informed, apply the right rules, and invest in compliance will avoid costly lawsuits while maintaining fair pay practices in an industry that drives California’s economy forward.

This post is for informational purposes only and does not constitute legal advice. California’s wage and hour laws for truck drivers are complex and vary by operation type. Consult an experienced employment attorney for tailored guidance. Cal Comply is a paid training provider mentioned for illustrative purposes; other compliance resources are available.