Pizza delivery drivers across the country often face the harsh reality of subsidizing their employers’ businesses with their own hard-earned money. In a major step forward for these essential workers, the U.S. District Court for the District of New Mexico has ruled in West v. BAM! Pizza Management, Inc. that employers cannot rely on a vague “reasonable approximation” to reimburse drivers for vehicle expenses—they must cover actual costs to comply with the Fair Labor Standards Act (FLSA).
This case highlights a widespread issue in the delivery industry: companies like BAM! Pizza requiring drivers to use their personal vehicles for work while reimbursing them at rates far below the true costs of gas, maintenance, insurance, and depreciation. These under-reimbursements act as unlawful “kickbacks,” effectively dropping drivers’ net pay below the federal minimum wage. The FLSA is clear—wages must be paid “free and clear,” without forcing employees to bear expenses that primarily benefit the employer. Judge Davenport’s decision dismantles the defendants’ attempts to water down this protection, rejecting their reliance on overtime provisions or other regulations to justify approximations that risk underpayment.
Drawing on the FLSA’s history, its plain text, and persuasive authority from the Sixth Circuit’s Parker v. Battle Creek Pizza decision, the court affirmed that employers must reimburse actual expenses for “tools of the trade” like delivery vehicles. To do so, the Court clarified that employers, not employees, bear the burden of maintaining accurate records of reimbursements to prove compliance. Without such records, they can’t evade liability when drivers prove violations through reasonable inferences—a framework rooted in the Supreme Court’s longstanding decision in Anderson v. Mt. Clemens Pottery Co. that levels the playing field for workers.
This isn’t just a win for the drivers in this case; it’s a powerful reminder to employers nationwide that cutting corners on reimbursements won’t fly. Delivery companies have long shifted massive operational costs onto low-wage employees, often reimbursing at half the IRS standard mileage rate or less. Our firm has filed dozens of similar lawsuits challenging these practices, and this ruling strengthens our fight to hold them accountable.
If you’re a pizza delivery driver who suspects you’ve been under-reimbursed for vehicle expenses, contact Biller & Kimble, LLC today for a free consultation. You may be entitled to recover unpaid wages, and we’re here to help enforce your rights under the law. Call us at 513-202-0710 or visit our website to learn more.
"*" 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.