While customers often focus on the convenience and cost of pizza delivery, a recent lawsuit against Casey’s General Store sheds light on a different kind of delivery charge – the one impacting their drivers. This article delves into the allegations that Casey’s flat-rate delivery payment system may be shortchanging its drivers, potentially raising questions about the true cost of your pizza delivery and the ethical considerations behind it.
Casey’s General Store, a prominent chain with approximately 2,300 stores across 16 states, is facing accusations of underpaying its pizza delivery drivers. The core of the issue revolves around the company’s policy of paying drivers a flat $2 fee per delivery, regardless of the actual expenses incurred by the drivers in using their personal vehicles.
According to a lawsuit filed in federal court, this flat-rate system falls significantly short of covering drivers’ vehicle expenses, particularly gas and wear and tear. The lawsuit estimates that Casey’s drivers are being under-reimbursed by 23 cents per mile. This calculation is based on the assumption that the average delivery trip is around six miles, for which drivers receive a flat $2. This translates to roughly 33 cents per mile, considerably less than the IRS standard mileage rate of 56 cents per mile, which is designed to reflect the actual costs of operating a vehicle.
The financial impact on drivers can be substantial. The lawsuit alleges that if a driver completes an average of three six-mile deliveries per hour, they are essentially “kicking back” $4.14 per hour to Casey’s from their own earnings. This is calculated by the $1.38 under-reimbursement per delivery (23 cents per mile times 6 miles) multiplied by three deliveries per hour.
Considering that drivers’ base hourly pay is reportedly close to the federal minimum wage of $7.25 per hour, this “kickback” can significantly reduce their net earnings, potentially pushing their take-home pay below the minimum wage.
The lawsuit was initiated by Jolene Greever, a Casey’s delivery driver since 2019, representing all similarly affected drivers across the company.
In response to these allegations, Casey’s has denied any wrongdoing in court filings. They argue that the claims are time-barred by the statute of limitations and dispute the notion that all drivers are similarly situated for a class-action lawsuit. Casey’s contends that any potential errors in payment were unintentional and made in good faith, thus subject to a two-year statute of limitations under the Fair Labor Standards Act, rather than the three-year limit for willful violations.
The company is also challenging the class-action status of the lawsuit, asserting that the individual circumstances of each driver’s claim may differ significantly. A judge is yet to rule on these preliminary legal issues.
Echoes of Similar Lawsuits in the Pizza Delivery Industry
Casey’s is not alone in facing such legal challenges. The lawsuit highlights a broader issue within the pizza delivery industry concerning driver compensation and expense reimbursement.
Notably, a similar lawsuit was previously filed against Domino’s Pizza in Iowa, alleging insufficient compensation for vehicle expenses, resulting in some drivers effectively earning as little as 35 cents per hour after accounting for vehicle costs. Although this particular case was voluntarily dismissed, it underscores the recurring nature of these concerns.
Similar legal actions have also emerged in other states, including New Jersey, New York, and Washington, indicating a nationwide pattern of scrutiny over delivery driver pay practices.
Past cases further illustrate this trend. In 2015, Papa John’s faced a class-action lawsuit in Iowa regarding inadequate vehicle expense reimbursement and mandatory uniform costs for drivers. This case was settled out of court with confidential terms after two years of litigation. Confidentiality was sought by both parties to promote amicable dispute resolution and to prevent potential reputational damage to Papa John’s.
More recently, a law firm pursuing class-action status against a Domino’s Pizza franchise representing up to 5,000 drivers received conditional approval. Another case involving Hungry Howie’s franchises in Michigan resulted in a $650,000 settlement for over 400 drivers who were allegedly reimbursed as little as 10 cents per mile.
These cases collectively suggest a systemic issue in the pizza delivery industry where the flat delivery charges presented to customers may not fully translate into fair compensation for drivers who bear the brunt of the delivery costs. While “how much does Casey’s charge for delivery” to the customer remains a straightforward price, the question of “how much does Casey’s pay for delivery” to its drivers is far more complex and legally contested. The outcome of the Casey’s lawsuit and similar cases could potentially reshape delivery pay models and bring greater transparency to the true costs associated with getting that pizza to your door.
