Class Action Suit Filed Against Food Delivery Service Waitr
A class action lawsuit has been filed against Louisiana based food delivery service Waitr. The suit claims that Waitr is compensating their drivers at a rate that is below the federal minimum wage.
Here's how the pay scale at Waitr works. Drivers for the food delivery service are compensated for their time at a rate of $5.00 per hour. The drivers also have the ability to earn and keep 100% of the tips offered by customers.
According to the lawsuit brought against the company by two of its drivers, the company, Waitr, should compensate drivers for vehicle expenses. The reason for that thinking is this. According to the Fair Labor Standards Act employees must be compensated "free and clear" of the cost of doing business.
In the minds of these drivers, the cost of doing business involves expenses related to operating their vehicles. The Federal standard of mileage reimbursement is .58 cents per mile. Waitr apparently isn't doing that, at least in the minds of these plaintiffs.
Some Waitr drivers travel hundreds of miles per week while doing their jobs. So you can see how mileage compensation could add up quickly to some serious money.
According to the complaint,
Waitr’s systematic failure to adequately reimburse automobile expenses constitutes a ‘kickback’ to Waitr such that the hourly wages they pay to Plaintiffs and the Putative Class Members was and continues to be below the minimum wage.
That information is according to The Current.
When asked to comment on the story and the lawsuit Waitr declined citing company policy.