Businesses Have Leeway on Delivery Driver Expenses, DOL Says

Employers of delivery drivers have many options to avoid minimum wage violations while reimbursing the drivers for vehicle expenses, the U.S. Labor Department said in new guidance.

Addressing an issue often at the center of million-dollar lawsuit settlements, the DOL’s Wage and Hour Division said in an opinion letter Monday that companies don’t need to adhere to a particular methodology when determining the total amount they must pay to drivers to cover costs related to their personal vehicle.

As long as the employee is reimbursed at a “reasonable approximation” of actual expenses, and those payments aren’t used to meet the ...