News & Analysis as of

Fair Labor Standards Act (FLSA) Delivery Drivers

BakerHostetler

5th Circuit: Motor Carrier Act Applies to Intrastate Transport of Goods in the Flow of Interstate Commerce

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The Fair Labor Standards Act (FLSA) requires that employers pay certain employees one-and-a-half times their regular rate of pay for any hours they work over 40 in a workweek. There are, however, several exemptions from the...more

Marshall Dennehey

Sixth Circuit Discredits IRS Mileage Rate as Sufficient Payment to Employee Drivers Under the FLSA

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Parker v. Battle Creek Pizza, Inc. & Bradford v. Team Pizza, Inc., Nos. 22-2119/3561 (6th Cir. Mar. 12, 2024) (not yet reported) - The Sixth Circuit recently considered a consolidated appeal regarding how delivery drivers...more

Amundsen Davis LLC

[Webinar] Independent Contractors in the Transportation Industry – Is Your Business Compliant? - May 15th, 10:00 am CT

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The Department of Labor (DOL) recently published a final rule on independent contractor classification under the Fair Labor Standards Act (FLSA). Transportation and logistics companies using independent contractors for...more

Littler

Littler Lightbulb: March Appellate Roundup

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This Littler Lightbulb highlights some of the more significant employment law developments at the U.S. Supreme Court and federal courts of appeal in the last month....more

Fisher Phillips

Fresh From The Oven: Appeals Court Tosses Out Rulings on Pizza-Delivery Driver Mileage Rates, Serves Several Wins for Employers

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An appeals court just ruled that pizza companies do not need to use the Internal Revenue Service’s standard mileage rate when reimbursing their delivery drivers for the actual costs of using their vehicles for work. In...more

Jackson Lewis P.C.

Sixth Circuit Rejects Two Methods for Computing Workers’ Vehicle Expenses for Minimum Wage Purposes

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The U.S. Court of Appeals for the Sixth Circuit vacated two district court decisions involving how pizza delivery drivers should be reimbursed for vehicle-related expenses under the Fair Labor Standards Act (FLSA). Parker v....more

Marshall Dennehey

Third Circuit Holds Uber Drivers Are Not Exempt From Federal Arbitration Act and Are Subject to Binding Arbitration

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The Third Circuit joined the First and Ninth Circuits in holding that Uber drivers are not exempt from the Federal Arbitration Act (FAA) and, therefore, are subject to binding arbitration.  The plaintiffs in the underlying...more

Littler

Littler Lightbulb: Labor & Employment Appellate Roundup

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This Littler Lightbulb highlights some recent labor and employment law developments at the U.S. Supreme Court and federal courts of appeal. At the Supreme Court. On October 3, the Justices agreed to hear In re Grand...more

BakerHostetler

Second Circuit Again Considers if Bakery Goods Drivers Are Excluded Under the FAA Because They Are “Transportation Workers”. The...

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While the Supreme Court’s opinion in Southwest Airlines Co. v. Saxon, 142 S. Ct. 1783 (2022), brought needed clarity to the analysis of the class of workers excluded as “transportation workers” by the residual clause of the...more

Fisher Phillips

Food Delivery Apps Can Be Both a Blessing and a Curse for Restaurants: 5 Tips to Avoid a Tip Credit Landmine

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Restaurants’ reliance on food delivery apps soared during the pandemic because they provide a convenient way for customers to order from local restaurants and an easy solution for processing restaurant payments and sourcing...more

Parker Poe Adams & Bernstein LLP

Delivery Drivers Not Excluded from Federal Arbitration Act Coverage

The Federal Arbitration Act (FAA) provides broad preemption of state laws that seek to limit the ability of employers to compel mandatory arbitration of disputes with employees. However, the FAA contains carve-outs that...more

BakerHostetler

Food Delivery Driver Opinion Sheds More Light on the FAA Exemption and Use of CPR Arbitration Rules

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Plaintiff Jacob McGrath filed a nationwide Fair Labor Standards Act (FLSA) action ultimately involving approximately 4,000 food delivery drivers for DoorDash Inc. alleging that the drivers, known as “Dashers,” were...more

Skadden, Arps, Slate, Meagher & Flom LLP

Employment Flash - October 2020

This edition of Employment Flash summarizes key employment law issues, including the Department of Labor's proposal for determining independent contractor status, revised DOL regulations that clarify who qualifies for...more

Shook, Hardy & Bacon L.L.P.

National Employment Perspective | Delivery Driver Reimbursement

Department of Labor Confirms that Delivery Drivers Need Not Be Paid Actual Expenses or the IRS Rate for Use of Their Own Vehicles - Over the past several years, employers have faced significant litigation over how they...more

Seyfarth Shaw LLP

Reasonable, Not Required: DOL Says IRS Mileage Rate Is Not Only Expense Reimbursement Method

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Seyfarth Synopsis: The U.S. DOL has confirmed that there is no per se violation of the FLSA’s minimum wage requirement when low-wage employees are reimbursed for their use of a personal vehicle at a reasonable rate that is...more

Fisher Phillips

Delivery Drivers Do Not Need to Be Reimbursed at the IRS Mileage Rate, per DOL Opinion

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The U.S. Department of Labor, Wage and Hour Division (DOL) issued an Opinion Letter on August 31 concluding that, under the Fair Labor Standards Act (FLSA) and its implementing regulations, employers are permitted to...more

BCLP

Seventh Circuit: Key Takeaways from Wallace v. Grubhub

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In a recent opinion, the Seventh Circuit decided that delivery drivers for a popular, nationwide mobile food-delivery service were not “engaged in foreign or interstate commerce” for purposes of determining whether they were...more

FordHarrison

"Better Ingredients, Better Pay?" – Federal Court Provides Guidance on FLSA Compliance and Reimbursement of Expenses for Pizza...

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Executive Summary: On November 5, 2019, a federal district court in Ohio issued a decision clarifying the law governing whether owners of 73 Papa John’s franchised locations violated the Fair Labor Standards Act (FLSA) by...more

Sheppard Mullin Richter & Hampton LLP

Which Are They? Independent Contractors Or Employees? Navigating The Conflicts Between State And Federal Law

UberX and UberBLACK Drivers Are Not Employees for Purposes of the NLRA - According to the NLRB General Counsel’s Division of Advice (GC), Uber’s UberX and UberBLACK drivers are independent contractors exempt from the...more

Seyfarth Shaw LLP

No Buyer? No Problem. 11th Cir. Affirms Application Of Motor Carrier Act Exemption To Intrastate Drivers Even If Final Recipient...

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Seyfarth Synopsis: The Motor Carrier Act exemption to the FLSA (“MCE”) is a powerful defense against overtime claims brought by interstate truck drivers and others involved in the interstate shipment of goods....more

FordHarrison

"Better Ingredients, Better Pay?" - Courts to Consider Legality of Papa John's Reimbursement Policy for Delivery Drivers

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Employers in the restaurant industry have seen an increasing trend of litigation over reimbursement policies for delivery drivers. ...more

Fisher Phillips

January 2019: The Top 16 Labor And Employment Law Stories

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It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years—and this past month...more

Locke Lord LLP

October 2018 Independent Contractor Misclassification and Compliance News Update

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October was an eventful month for legal developments in the area of independent contractor misclassification and compliance. In one of the nine cases reported below, the U.S. Department of Labor continues to aggressively...more

Locke Lord LLP

June 2018 Independent Contractor Misclassification and Compliance News Update

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This past month was not a particularly newsworthy month in the area of independent contractor misclassification and compliance, but four court cases do provide insights for businesses that rely on ICs. In the first case...more

Locke Lord LLP

April and May 2018 Independent Contractor Misclassification and Compliance News Update

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The past two months were momentous for many companies that engage independent contractors in California to supplement their workforce or to interact with their customers. This applies not only to businesses based in...more

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