Pizza Drivers less than minimum wage?

[NCO]

Hi folks! I was talking to an old friend of mine tonight who delivers pizzas to put herself through school. She told me that she earns considerably less than minimum wage and that is because she is exempt from the minimum wage law.

I called bs on that because I used to deliver many years ago and was paid minimum wage. She couldn't provide me with the actual law exempting deliver drivers so I'm posting this here for some further info.

It just sounds wrong to me. Wait staff in-store yes, while that sucks, there's still archaic laws that exempt them. But delivery drivers use their own vehicles and pay for gas and repairs our of their own pocket.

I sincerely hope that I'm right in this and she can take some action against her employer!

[TheSHAD0W]

It varies from state to state. Delivery drivers, since they often receive tips, may be exempt from the normal minimum wage. Unless you want to go diving in your state's laws (and it's easy to miss things), the quickest way to find out would be to contact the labor board for your state.

[AmbrosiaWriter]

From:
http://www.dol.gov/compliance/guide/...e.htm#BasicPro

Employers of tipped employees (i.e., those who customarily and regularly receive more than $30 a month in tips) may consider such tips as part of their wages, but employers must pay a direct wage of at least $2.13 per hour if they claim a tip credit.

So, based on Fair Labor Standards Act (FLSA) pizza delivery drivers could be considered tipped employees, and so the franchise/pizza place could get away with paying them less than minimum wage.

However I believe each state may have their own laws altering FLSA in regards to delivery drivers, so I'd double check your state's laws.

As an addendum, this is a very good thread concerning federal law when it comes to pizza drivers, so I'd suggest you show this to your friend to make sure she isn't being taken advantage of: Employer breaking Federal law?

[Racket_Man]

I can tell you for a FACT that 95% of all delivery drivers these days are indeed paid well below minimum wage (in the range of $4 - $5.50 per hour) UNLESS you live in one of 7 states that do not allow tip credit wages (meaning all employees are paid at least the states minimum wage).

A lot of the bigger companies these days pay split wage. This means that you will receive minimum wage while in store and sub-sub-minimum wage (tipped wage) while on a delivery. THis is bacause the US DOL has rules that state m"If a tipped employee performs NON-tipped activities such as cleaning, food preperation, trash duties, etc. for more that 20% of their time, the employee MUST be paid minimum wage for those noin-tipped activities".

Delivery drivers are considered TIPPED employees and thus the employer can leagally pay them below minimum wage at least while deliverying.

Over the last 5 years or so full minimum wage for drivers is has become a thing of the past. With the rising of commodity prices, gas prices, etc. starting in 2008 (the gas chrisis ) profit margins got slimmer and slimmer. Most places cut what little benefits there were (such as vacation, discounted food either at work or outside, etc.). companies have discontinued multipule pizza discounts and have raced toward the lowest common demoninator type customer. couple this with running insane cheap pizza promotions they have discounted themselves into a hole of medocraty (sp) with very slim profit margins.

and this does not include being properly compensated for the abuse of the drivers vehicle. that is another whole different rant itself.
Welcome to my world.

Amborsia I see you're on Greg's site.

[Dasota]

even if they are tipped employees, if they make less money in tips than what would bring them up to minimum wage, then the employer *has* to pay them move to bring that worker up to minimum wage.

[Geek King]

even if they are tipped employees, if they make less money in tips than what would bring them up to minimum wage, then the employer *has* to pay them move to bring that worker up to minimum wage.

This here. Make sure your friend is tracking what she's actually making with tips. There should be a proceedure to apply for the make-up pay to get up to minimum if she's not making it. She'll also need to find out if that's calculated per week/bi-weekly/monthly/whatnot.

[pltkcelestial18]

I know in Texas, delivery drivers are paid less than minimum wage, as I was one. They had two or three options you could clock in under, because my shifts varied. Some days I delivered pizza, some day I cooked, some days I answered phones. There were days I did mostly everything but not often. But yes delivery drivers got less than minimum wage.

[Racket_Man]

even if they are tipped employees, if they make less money in tips than what would bring them up to minimum wage, then the employer *has* to pay them move to bring that worker up to minimum wage.

This here. Make sure your friend is tracking what she's actually making with tips. There should be a proceedure to apply for the make-up pay to get up to minimum if she's not making it. She'll also need to find out if that's calculated per week/bi-weekly/monthly/whatnot.

The employee should NOT have to do any sort of calculations to see if they are indeed receiving enough tips to cover tip credit (difference between minimum wage and tipped wage). This SHOULD be done by the employeer. Unless the employee suspects the employer is purposely over stating their tips to cover the difference). If the tipped employee does NOT make enough tips to cover the difference, the employer should AUTOMATICALLY calculate the differencial and put it on the employees paycheck.

IF the employer is indeed overstating tips then the employee needs to contact both their state DOL AND the Federal DOL as these are very serious situation that can result in the employer being spanked very very very hard with fines and such.

[sms001]

As a quick aside NCO, you should remind your friend that they will need to be scrupulously honest in what they report in tips if they decide to contest this in any way.

[evilhomer]

It just makes me sick that even in spite of slim profit margins, high costs and the rest of that bullshit, there is still enough money for the executives of the big chains to take home six and seven figure salaries. They take that kind of stupid money, 10,000 times what they need to live off of, and the employees that earn it all for them get screwed over like this courtesy of some bullshit law. Then its' up to me, the consumer, who is getting screwed over just as bad at his own work, and can barely come up with the money to buy the pizza, but needs to buy the pizza because I'm too tired after my fucking 12 hour shift, has to scrape together enough tip money to adequately compensate the driver.

Those greedy cunts better enjoy their time on earth because they'll burn in hell for their greed.

[Racket_Man]

It just makes me sick that even in spite of slim profit margins, high costs and the rest of that bullshit, there is still enough money for the executives of the big chains to take home six and seven figure salaries. They take that kind of stupid money, 10,000 times what they need to live off of, and the employees that earn it all for them get screwed over like this courtesy of some bullshit law. Then its' up to me, the consumer, who is getting screwed over just as bad at his own work, and can barely come up with the money to buy the pizza, but needs to buy the pizza because I'm too tired after my fucking 12 hour shift, has to scrape together enough tip money to adequately compensate the driver.

Those greedy cunts better enjoy their time on earth because they'll burn in hell for their greed.

and I could not agree more EvilHomer. especially during weather conditions that shuts down even the public transit system and the uppers decision is to "GET OUT THERE and make US (company) MONEY" whist they sit in their nice warm houses with their nice stuff and I am outdoors literally risking my live and vehicle for sub-sub-minimum wage and the "sometimes" generosity of my customers.

For me some of the worst tipping nights have been during blizzards or bad weather.

[mhkohne]

For me some of the worst tipping nights have been during blizzards or bad weather.

Man that stinks. When I'm ordering food in snow or driving rain, I generally tip better than usual - I sure as heck didn't want to go out in that mess, so I'm paying someone else to do so!

I can't really understand people who won't tip delivery people - in the US that's so rude.

[NCO]

For me some of the worst tipping nights have been during blizzards or bad weather.

It was the same for me when I used to deliver in the 80's and 90's. Good weather, you always had the regular deadbeats, but tips were good. Let a bad storm hit and it seemed to bring out the worst in people. Oh and delivery on holidays? Guaranteed drop in tips!

[Ben_Who]

From the Maine Dept. of Labor website:

The minimum wage in Maine is $7.50 per hour. Maine does not have a training wage or subminimum wage for students. Tipped service employees can be paid one-half the minimum hourly wage. However, if this rate plus tips does not average at least the minimum wage, the employer must pay the difference.

Your mileage may, naturally, vary.