A new failure to pay proper wages and overtime pay has been filed against Pizza Hut. In this case, a Pizza Hut delivery driver claims that the Pizza Hut Company violated the Fair Labor Standards Act and the Minimum Wage of Workers Act when they failed to accurately approximate his automotive expenses for reimbursement and this act led to him failing to receive the proper amount for minimum wage. According to the court case, the delivery driver delivered on average two to three orders in one hour and drove five miles for each delivery.
The Pizza Hut Company claims that the driver failed to state a claim for unpaid minimum wage using these facts. The court rejected this argument but looked to certain sections of the Fair Labor Standards Act which state that an employee regular rate of pay does not include travel or other expenses that arise during work. The court looked to the Department of Labor in deciding whether under the Fair Labor Stands Act an employee is allowed to claim that their wages are under minimum wage when they are reimbursed for expensive relating to a vehicle.
According to part of the Department of Labor under the Fair Labor Standards Act, “when an employee incurs expenses on his employer’s behalf or where he is required to expend sums solely by reason of action taken for the convenience of his employer, an employee is eligible for the reimbursement of those expenses. However, those payments are not included in the employee regular pay rate.”
This payment is not considered compensation for services performed by an employee during any hours in a work week. However, if an employer makes inaccurate or unreasonable estimates about expenses then the employee is allowed to claim that their wage was lower because expenses were not accurately reimbursed.
The court decided that the driver accurately pled his approximate costs for running his vehicle and when included with his hourly wage he had accurately claimed that the Pizza Hut Company failed to pay him at least the federal or state minimum wage.
Cases similar to this one happen all too frequently to employees all across the United States and even to employees right here in Tennessee. If you or someone you work with feels that your minimum wage rights have been violated, then we encourage you to contact one of our knowledgeable and caring Tennessee employment and minimum wage labor lawyers immediately. We care about our clients and will work with you to make sure that you receive the compensation you are entitled to.
Contact us online or call us at 800.705.2121 to set up a FREE consultation to discuss your legal options