As a firm specializing in representing employees and dedicated to fighting for workers’ rights, Biller & Kimble, LLC, is thrilled to share a major win in the U.S. Court of Appeals for the Tenth Circuit. In the case of Mighell v. HPG Pizza I, LLC, et al, our team successfully argued to overturn a lower court ruling that dismissed a delivery driver’s claims for lack of standing. The Tenth Circuit’s decision clarifies a key principle of Article III standing in FLSA cases involving unreimbursed vehicle expenses.
Case Background: A fight to bring FLSA claims for delivery drivers.
Steve Mighell brought a class and collective action on behalf of himself and similarly situated delivery drivers against HPG Pizza I, LLC and HPG Pizza II, LLC – franchisees that operate Papa John’s stores in Colorado. The lawsuit alleged that Mr. Mighell and his fellow delivery drivers were required to use their own vehicles and cover the associated costs, to complete deliveries for Defendants. Mr. Mighell alleged that Defendants their delivery drivers at approximately $0.35 per mile, and that amount did not reimburse them for the actual expenses associated with the use of their vehicles for Defendants’ purposes. Mr. Mighell alleged that this under-reimbursement effectively reduced his pay below the federal minimum wage of $7.25 and also Colorado’s state minimum wage. He alleges the under-reimbursements also reduced his overtime wages in violation of the Fair Labor Standards Act (FLSA) and Colorado wage and hour laws.
The district court dismissed the case for lack of standing, concluding that Mighell had not alleged a sufficient injury in fact. In doing so, the court accepted the defendants’ view of the law—specifically regarding the application of a Colorado “tip credit”—and determined that his effective wage remained above the federal minimum.
The Tenth Circuit vacated and reversed. The court emphasized that when assessing standing, judges must assume the legal validity of the plaintiff’s claim. Courts are not supposed to decide the merits of the case at the standing stage. By assuming a legal proposition that undercut Mighell’s theory—namely, that the Defendants were entitled to an additional amount toward the wage as a “tip credit”—the district court “put the merits cart before the standing horse.” Assuming the validity of his legal claims, Mighell had adequately alleged an injury in fact. The Tenth Circuit therefore vacated the dismissal and remanded the case for the district court to address the merits properly.
Why this matters for delivery drivers
This decision is significant for delivery drivers. It reinforces that plaintiffs in unreimbursed vehicle expense cases do not have to prove the ultimate correctness of their legal theory simply to establish standing. Courts must accept the claim as legally valid for purposes of determining whether the driver suffered a concrete injury.
For drivers who use their personal vehicles to make deliveries and receive inadequate reimbursement, this ruling helps keep the courthouse doors open. It precludes similar standing arguments that defendants frequently make in these types of cases both at the pleading stage and in opposition to motions for class certification.
At our firm, we continue to see these exact issues play out for pizza delivery drivers and other delivery workers. Employers who reimburse at low flat rates or per-mile amounts that do not reimburse for the drivers’ actual vehicle costs risk violating the FLSA’s minimum wage and overtime requirements. When those under-reimbursements effectively reduce a driver’s pay below the required minimum, the law provides a remedy.
As we continue to pursue this case and others, we will keep the delivery driver community informed of further developments. If you have worked as a pizza delivery driver and believe you were not properly reimbursed for the costs of using your own vehicle, you may have rights under federal and state wage laws.
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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.