Casey’s Being Sued For Shortchanging Delivery Drivers
A lawsuit filed in federal court accuses Casey's General Stores of shortchanging their delivery drivers, according to the Des Moines Register. Casey's is denying all charges. The company says that it pays its drivers a flat rate of $2 per delivery. But Casey's does not track drivers' vehicle expenses or reimburse drivers for gas or other expenses.
The Register reports that the lawsuit claims that Casey's flat-rate payment plan for their drivers shortchanges them at a rate of 23 cents per mile. That calculation is based on a $2 payment for delivery drives that take an average of six miles. The payment equates to 33 cents per mile, which is 23 cents less than the IRS standard mileage rate of 56 cents per mile, according to the Register.
According to the Register, assuming Casey's drivers average three, six-mile deliveries per hour, they are "kicking back" $4.14 per hour from their own earnings. The driver's hourly wage is nearly equal to the federal minimum wage of $7.25 per hour, and so the effect of the kickback is reducing their hourly wage to significantly less than the minimum wage, according to the lawsuit.
In recent court filings, Casey's has denied any wrongdoing, according to the Register. Pizza chains including Papa Johns and Dominos have faced similar legal action.
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