COLUMBIA, SC – Employers who expect their workers to use personal vehicles on behalf of the business must provide mileage reimbursement or they may be in violation of federal law, the operator of two sandwich shops in Clemson and Anderson has learned.
U.S. Department of Labor Wage and Hour Division investigators found Clemson Subs LLC and Anderson Subs LLC – operated as Jimmy John’s establishments by their franchise owner – violated Fair Labor Standards Act provisions by failing to reimburse drivers for their mileage expenses. The employer’s failure to pay mileage expenses reduced drivers’ wages below the federal minimum wage of $7.25 per hour.
The investigation led the division to recover $27,209 in back wages for 74 workers.
“Amid the pandemic, food delivery drivers provide vital service to homebound customers and help many restaurants replace revenue lost when indoor dining is limited,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “The operator of these Jimmy John’s locations failed to comply with laws regarding employee use of personal vehicles, a situation now resolved by our investigation. Workers and employers alike are encouraged to contact us with questions about pay practices, mileage reimbursement and tips as a part of wages.”
For information about the FLSA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division.