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ARTICLE · 25 MARCH 2024

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).

United StatesEmployment and HR
Justin Barnes
Justin Barnes
Jeffrey W. Brecher
Jeffrey W. Brecher

OVERVIEW

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. Battle Creek Pizza, Inc., No. 22-2119 (Mar. 12, 2024); Bradford v. Team Pizza, Inc., No. 22-3561 (Mar. 12, 2024). The Sixth Circuit panel remanded both cases.

Ruling on a consolidated interlocutory appeal, the appeals court found neither district court used the correct method for determining whether reimbursements given to delivery drivers for the cost of using their personal vehicles resulted in a minimum wage violation. The appeals court did not offer a uniform or controlling formula to calculate vehicle reimbursement costs to follow for determining whether a minimum wage violation occurred.

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