Delivery drivers are accustomed to using personal vehicles for delivery work, as it is a required part of the job. Drivers delivering on behalf of their employer often bear the costs of operating and maintaining their own vehicles. These expenses can include fuel, routine maintenance, repairs, insurance, tire replacement, and vehicle depreciation.
When mileage reimbursement rates fail to adequately cover these expenses, drivers’ take-home pay may be reduced significantly. Insufficient reimbursement can cause a driver’s wages to fall below the federal minimum wage. This could potentially give rise to claims under the Fair Labor Standards Act (FLSA).
These issues were at the center of the lawsuit filed by former Pennsylvania delivery drivers against JMP Food, LLC and owner Syed Akhtar Zaidi. The company operates several Domino’s Pizza franchise locations throughout Pennsylvania.
The lawsuit alleged that the defendants relied on a reimbursement method that did not accurately compensate drivers for the costs of using their personal vehicles for deliveries. The Internal Revenue Service (IRS) to set the standard mileage rate at 65.5 cents per mile in 2023.
Case Status
The case, Jiles v. JMP Food, LLC et al. has been resolved in favor of the Pennsylvania delivery drivers and is no longer pending in the United States District Court for the Eastern District of Pennsylvania.
Why Mileage Reimbursement Matters
Federal wage laws require that employees receive at least the minimum wage for all hours worked. When workers are required to incur business expenses that primarily benefit their employer, those costs can reduce their effective wages.
For delivery drivers, inadequate reimbursement may result in:
- Reduced take-home pay
- Uncompensated vehicle expenses
- Potential minimum wage violations
- Claims for unpaid wages and damages under federal law
As delivery costs and vehicle expenses continue to fluctuate, proper reimbursement remains a significant issue for workers in the food delivery industry.
About Forester Haynie
Forester Haynie represents employees in wage and hour disputes nationwide. Many of which include cases involving delivery driver reimbursement, unpaid wages, and minimum wage violations. The firm’s attorneys have recovered more than $20 million on behalf of pizza delivery drivers.
We are committed to helping employees understand their rights under the FLSA and receive compensation from employers who disregard guidelines. Forester Haynie handles these cases on a contingency-fee basis, meaning clients pay no upfront attorneys’ fees or litigation costs.