As gasoline prices climb—recent spikes have added roughly $1 per gallon in many markets with the average price of gasoline now exceeding $4 a gallon—employees who rely on their personal cars, trucks, or vans for work-related deliveries are feeling the pinch.
U.S. gasoline prices have surged above $4 per gallon, the highest prices since August 2022.
Delivery drivers for restaurants, retailers, logistics firms, and other employers often log up to hundreds of miles per shift. When employers do not adequately reimburse these costs, workers effectively subsidize the business out of their own pockets, which may ultimately result in a minimum wage violation.
The Growing Financial Strain on Delivery Employees
Being employed as a delivery driver often means that the employee is required to provide their personal vehicle to complete deliveries for their employer. —This generates direct out-of-pocket expenses, which include but are not limited to fuel, maintenance, tires, insurance, storage, registration, and depreciation.
The IRS’s 2026 standard business mileage rate is 72.5 cents per mile, up 2.5 cents from 2025, intended to approximate average costs of operating a vehicle in the United States.
Yet, when gasoline prices surge, as is happening now, the actual gasoline prices often exceed the price considered in setting the IRS’s annual benchmark rate.
Without proper reimbursement, these costs function like an involuntary wage deduction, which means the effective hourly rate after vehicle expenses can fall below minimum wage, triggering legal violations.
If you are a delivery driver and believe you are being under-reimbursed for the expenses you incur by providing your vehicle to your employer, fill out the contact form below and a member of our team will call you to run through our intake process.
"*" indicates required fields
ADVERTISING ONLY: The information on this blog is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
Past results obtained by Biller & Kimble, LLC are no guarantee of future results. Each case or matter is different and must be judged on its own merits.