Deceptive Trade PracticeWage Theft

Investigation of Failure to Reimburse Expenses for Delivery Drivers

Migliaccio & Rathod LLP is currently investigating various employers of delivery drivers of both food and material goods for failure to reimburse their drivers’ expenses associated with use of personal vehicles. Under the Fair Labor Standards Act (FLSA) employers must reimburse their drivers for expenses incurred by use of personal vehicles where the costs cause the employees’ pay to fall below the minimum wage. The expenses of which the employer may be responsible include gas, insurance, maintenance, repairs, and depreciation. Across the country, lawsuits are being brought against various franchises which violate the FLSA in their failure to adequately compensate their delivery drivers.

Many delivery drivers who are required to use their own vehicle to deliver, for example, pizza, baked goods, auto parts, or other gig economy goods, report that their employers have failed to offer them fair pay given the expenses incurred to their vehicle. Moreover, even delivery drivers who may be classified as independent contractors, such as uber eats or package delivery drivers, could still qualify for these reimbursements.

Common delivery driver employer pay policies in violation of the FLSA minimum wage include:

  • Paying a low, flat rate for delivery, inadequate to account for true expenses incurred
  • Compensating for mileage at a rate less than the IRS mileage rates required by law ($0.575/mile in 2020 for businesses)
  • Failing to track drivers’ mileage or actual expenses altogether
  • Absorbing the delivery fee, rather than it going to the driver, without clear, written notification to the customer that the delivery fee is separate from gratuity (In New York and Massachusetts this fee must be paid to the delivery driver by law)

Are you a delivery driver who uses their personal vehicle and have been inadequately reimbursed for the vehicle expenses incurred as a result of your employment?

If so, we would like to speak with you. Please complete the contact form on this page, send us an email at info@classlawdc.com, or give us a call at (202) 470-3520 for more information.

Attorneys Committed to Fighting Wage Theft

The lawyers at Migliaccio & Rathod LLP have years of experience in class action litigation against large corporations, including in cases involving wage theft and unfair & deceptive trade practices. More information about our current cases and investigations is available on our blog.

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