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Delivery Mileage Compensation Iowa

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  • Delivery Mileage Compensation Iowa

    I work as a delivery driver in Iowa for a fast food restaurant and I use my own car. The drivers are paid $2 for each delivery taken. Some deliveries are 5+ miles away, thus a 10+ mile round-trip. Are we being paid less than the legal limit?

    Our salary is basically ( 4.35/hr + tips + $2 for each delivery)

    On slow days or bad tipping days, I barely make minimum wage, and thats before you take into account gas and general wear and tear on my vehicle.

  • #2
    May or may not be a problem. You need on a workweek basis record absolutely every penny you get from all sources. Plus all hours worked. Plus actual business costs not reimbursed. (And if I meant to say "mileage, I would have said "mileage"). Then you need to be able to not only find out, but hard document whether or not you are actually making minimum wage (including tips).


    Example. Bob makes exactly MW with no possibility of tips what-so-ever. Bob drives his own car say 30 miles a week on business and is not reimbursed for business related auto expenses.

    Given the facts as stated, there is a 100% chance that Bob's employer is violation of the "free and clear" rule associated with the federal FLSA minimum wage rules. Bob clearly is not being paid minimum wage "free and clear" of unreimbursed business expenses.


    Now given what you posted in your question, maybe you are being paid minimum wage and maybe you are not being paid minimum wage "free and clear". Either way, you do not seem to be hard documenting things. Correct?

    Now people have taken the federal DOL's "free and clear" rule to mean a requirement to pay mileage. The law does not say that. The law places a limited requirement that MW not be impacted by actual unreimbursed expenses.

    Past that, this is federal rules only. Your state is not my state and I have no idea what your state's rules (if any) are.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)