Pizza Delivery Drivers Could Be Owed Thousands in Unpaid Mileage Reimbursement

For pizza delivery drivers, every shift puts more than miles on a personal vehicle. Drivers pay for gas, oil changes, tires, brakes, repairs, insurance, registration, and the gradual loss of their car’s value. When an employer fails to reimburse those expenses adequately, the driver may wind up paying part of the restaurant’s operating costs out of their own pocket.

That can be more than unfair. In some circumstances, it may violate federal or state wage laws.

Pizza restaurants may pay drivers a small amount for each delivery, a low cents-per-mile rate, or nothing at all for using their own vehicles. Although those payments can appear reasonable on a pay stub, they may not come close to covering the driver’s actual costs. Over hundreds of deliveries and thousands of miles, even a modest reimbursement shortage can add up to several thousand dollars.

If you have delivered pizzas using your own vehicle, it may be worth examining how your employer calculated your reimbursement and whether your pay remained above the legally required minimum wage after your vehicle expenses were considered.

If you suspect you may be owed more than you were paid, contact Morgan & Morgan for a free case evaluation to learn more about your legal options.

Why Mileage Reimbursement Matters for Pizza Delivery Drivers

A personal vehicle effectively becomes a tool of the trade when an employer requires a pizza delivery driver to use it for work. Without that vehicle, the restaurant could not complete its deliveries or collect the revenue associated with them.

Federal wage regulations generally require workers to receive their wages “free and clear.” An employer cannot shift the cost of tools or equipment required for the job onto an employee when those expenses cut into the minimum wage or required overtime pay. The U.S. Department of Labor has specifically recognized the required use of a personal vehicle as an employer-related expense in this context.

This issue is especially significant for pizza delivery drivers because many earn close to the applicable minimum wage before expenses are taken into account. A driver may appear to earn a lawful hourly wage, but that number does not necessarily reflect what the driver is actually taking home.

Suppose a driver earns $10 an hour but effectively spends $4 an hour operating a personal vehicle for deliveries after accounting for inadequate reimbursement. The driver’s effective wage may be only $6 an hour. Depending on the applicable federal, state, and local minimum wage, that shortfall could support a claim for unpaid wages.

The Department of Labor has pursued pizza restaurants over precisely this issue. In one enforcement action, investigators recovered more than $140,000 in back wages for 66 delivery drivers after finding that inadequate reimbursement for personal-vehicle expenses caused some workers’ wages to fall below the federal minimum wage.

The IRS Mileage Rate vs. the Employer’s Reimbursement Rate

The Internal Revenue Service publishes an optional standard mileage rate intended to approximate the cost of operating a vehicle for business purposes. Due to increased fuel prices, the IRS revised its 2026 business mileage rate to 76 cents per mile for eligible expenses incurred on or after July 1, 2026. The rate was 72.5 cents per mile during the first half of 2026.

That does not mean every pizza restaurant is automatically required under federal law to pay exactly 76 cents per mile, but the IRS rate is recognized as a national average of automobile ownership and operation.

An employer cannot necessarily defend an inadequate reimbursement policy merely by saying that every driver received the same flat fee. A payment of $1 per delivery, 20 cents per mile, or another fixed amount may be insufficient if it bears little relationship to the actual cost of operating a vehicle and causes drivers’ wages to fall below the applicable minimum wage.

State laws may provide additional rights. Some states require employers to reimburse employees for necessary business expenses even when the employee’s remaining pay would otherwise satisfy the federal minimum wage. The law that applies can depend on where the driver worked, when the work occurred, and how the employer structured the payment system.

Vehicle Costs Employers May Overlook

Gas is only one part of the cost of driving. A restaurant that bases reimbursement solely on fuel prices may ignore many of the expenses caused or accelerated by repeated deliveries.

Those costs can include:

• Oil, fluids, and routine maintenance
• Tires, brakes, batteries, and mechanical repairs
• Vehicle depreciation
• Insurance and registration expenses
• Additional insurance costs associated with delivery work
• Cleaning and interior wear
• Increased maintenance from frequent stopping, starting, and idling
• Damage caused by potholes, curbs, poor roads, and severe weather

Pizza delivery can be particularly hard on a vehicle. Drivers may make numerous short trips during one shift, repeatedly start and stop the engine, idle while waiting for orders, and place additional stress on brakes and tires. These costs may not appear during any single shift, but they become real when the driver needs an unexpected repair or has to replace a vehicle sooner than anticipated.

How Unreimbursed Expenses Can Push Pay Below Minimum Wage

Under the Fair Labor Standards Act, covered nonexempt employees must generally receive at least the federal minimum wage for every hour worked. State or local law may require a higher rate. Employees must also receive overtime pay when applicable.

When a pizza restaurant requires a driver to use a personal vehicle, the driver’s unreimbursed business expenses can effectively operate as a deduction from wages.

Consider a simplified example. A driver works 20 hours in one week and drives 200 delivery miles. The employer pays 25 cents per mile, providing $50 in reimbursement. Using the current 76-cent IRS rate only as an illustrative benchmark, the estimated operating cost would be $152. That leaves a potential reimbursement gap of $102 for the week or $5.10 for every hour worked.

If the driver received an hourly cash wage of $10, the reimbursement shortage could reduce the driver’s effective pay to $4.90 an hour before other wage issues are considered.

That example does not establish the amount legally owed in every case. The IRS rate is not automatically the required rate, tip-credit rules may affect the analysis, and state laws differ. It does demonstrate why a reimbursement policy that looks adequate on paper may create a substantial minimum-wage shortfall.

Small differences also add up. A reimbursement gap of 30 cents per mile across 150 delivery miles per week would equal $45 a week. Over 50 working weeks, that amounts to $2,250. Over several years, the driver could potentially lose thousands of dollars before considering any additional damages that may be available.

Under the FLSA, workers who prove unpaid minimum wages or overtime may also be eligible for an equal amount as liquidated damages, although the outcome depends on the facts and defenses in the case.

Common Mileage-Reimbursement Problems at Pizza Restaurants

Not every low reimbursement rate is automatically unlawful. However, several payment practices may indicate that a restaurant is not accounting properly for its drivers’ expenses.

Potential problems include:

• Paying no mileage or vehicle reimbursement
• Paying a flat amount per delivery regardless of the distance traveled
• Using an outdated rate that does not reflect changing operating costs
• Reimbursing only for gasoline while ignoring maintenance and vehicle wear
• Failing to count the driver’s return trip to the restaurant
• Excluding required trips to pick up supplies, make deposits, or travel between locations
• Using a percentage of sales that has no meaningful relationship to mileage or vehicle costs
• Treating tips or customer delivery charges as if they automatically reimburse the driver
• Failing to explain how the reimbursement amount was calculated
• Keeping incomplete delivery, dispatch, mileage, or payroll records

A flat per-delivery payment is not necessarily illegal, but a restaurant should not simply choose a convenient number without considering average trip length, local fuel prices, operating expenses, and the effect the policy has on drivers’ wages.

How to Estimate What You May Be Owed

A preliminary estimate begins with determining how many business miles you drove during each workweek. That generally includes travel from the restaurant to delivery locations, required travel between deliveries, return mileage, and other driving performed for the employer’s benefit. Ordinary commuting between home and the restaurant is generally treated differently.

Next, identify the reimbursement you actually received. Look for per-mile payments, per-delivery amounts, cash reimbursements, and any separate amounts listed on pay statements.

You can then compare what you received with an estimate of your vehicle expenses. Depending on the circumstances, that estimate may use:

• The IRS rate applicable during the period worked
• The American Automobile Association Know Your Costs driving mileage estimates
• Actual receipts and operating expenses

Subtract the reimbursement received from the estimated business expense. The difference is the potential reimbursement shortage. That shortage can then be allocated across the hours worked during each week to determine whether it reduced your wages below the applicable minimum wage or affected overtime compensation.

This calculation can become complicated when a driver received tips, worked at more than one location, performed both tipped and non-tipped duties, or was paid different hourly rates inside and outside the restaurant. An employment attorney can review the records and determine which federal and state laws may apply.

Evidence Pizza Delivery Drivers Should Keep

You do not need to wait until you leave your job to begin preserving evidence. The following records may help establish how much you drove, what you were paid, and how your employer calculated reimbursement:

• Pay stubs and wage statements
• Work schedules and time records
• Delivery tickets and order receipts
• Dispatch records and driver reports
• Screenshots from restaurant delivery systems
• GPS history and phone location data
• Mileage-tracking app reports
• Navigation histories
• Text messages and emails with managers
• Photographs of posted reimbursement policies
• Employee handbooks and onboarding documents
• Gas, repair, tire, maintenance, and insurance records
• Bank statements showing reimbursement deposits
• Notes identifying the dates, hours, and locations of shifts

Drivers who did not keep perfect records may still have options. Delivery addresses can sometimes be reconstructed using order histories, schedules, dispatch information, mapping software, phone records, and testimony from drivers who worked similar routes.

Do not alter or improperly access company records. Preserve materials already in your possession and speak with an attorney about the lawful ways to obtain additional evidence.

Morgan & Morgan Represents Workers in Unpaid Mileage Claims

Morgan & Morgan’s wage and hour attorneys represent workers who may have been denied minimum wages, overtime compensation, tips, reimbursements, and other legally required pay. 

Our firm specifically identifies pizza delivery drivers as workers who may experience unpaid wages involving mileage, prep time, misclassification, and vehicle-related costs.

A reimbursement claim may involve more than comparing two mileage rates. Attorneys may examine the restaurant’s reimbursement formula, delivery records, payroll system, tip-credit practices, employee classification, inside-the-store duties, and compliance with state expense-reimbursement laws.

Drivers may also have similar claims to their coworkers. When an employer applies the same reimbursement policy across a store, franchise group, or chain, multiple drivers may be affected by the same alleged wage practice.

Morgan & Morgan offers free case evaluations. The Fee Is Free®—you pay nothing unless we win your case. Results depend on the particular facts and legal circumstances of each matter.

How Much Should Pizza Delivery Drivers Be Reimbursed for Mileage?

There is no single federal mileage-reimbursement rate that every pizza restaurant must pay in every situation. The employer’s payment must be sufficient to prevent required business expenses from reducing the driver’s earnings below the applicable minimum wage.

The IRS business mileage rate is an important benchmark. As of July 1, 2026, it is 76 cents per mile; it was 72.5 cents per mile during the first half of 2026. However, the IRS rate is optional and does not automatically determine damages in a wage claim.

The correct reimbursement may also depend on state law. Some states have more protective expense-reimbursement requirements that may obligate employers to cover necessary business expenses even when the driver’s net pay remains above the federal minimum wage. A lawyer can compare your employer’s rate with your mileage, vehicle costs, wage rate, tips, and the laws of the state where you worked.

Can My Employer Pay Less Than the IRS Mileage Rate?

Possibly. Paying less than the IRS rate is not automatically a violation of federal law. However, the alternative must reimburse all expenses drivers incur. It cannot be an arbitrary amount selected merely because it is cheaper for the employer. If the payment consistently fails to cover vehicle costs and causes the driver’s wages to fall below the applicable minimum wage, it may violate the FLSA. State law may impose stricter obligations.

Therefore, receiving some reimbursement does not necessarily mean you were paid correctly. The relevant questions include how the employer selected the rate, which expenses it considered, how many miles were included, and what your effective hourly wage became after the unreimbursed costs were deducted.

What if I Never Tracked My Mileage?

Not having a personal mileage log does not necessarily prevent you from investigating a claim. Pizza delivery work typically creates records in several places. The restaurant may retain customer addresses, delivery tickets, dispatch reports, point-of-sale records, driver checkout reports, schedules, time records, and reimbursement data. Your phone may also contain navigation histories, GPS information, text messages, photographs, or location records.

An attorney at Morgan & Morgan may be able to reconstruct routes by matching delivery addresses with work schedules and estimating the round-trip distance from the restaurant. Coworker testimony and records from drivers performing similar routes may provide additional context.

Begin saving the records that remain available to you. Download pay statements, preserve scheduling-app screenshots, export any available phone-location history, and write down what you remember about typical shifts. Note approximately how many deliveries you completed, the neighborhoods you served, whether multiple orders were combined, and whether you were required to make additional work-related trips. A lack of perfect records should not stop you from asking an attorney to evaluate the available evidence.

How Far Back Can I Recover Unpaid Mileage?

Under the FLSA, the ordinary limitations period is generally two years. It can extend to three years when a violation is found to have been willful. State wage and expense-reimbursement laws may provide different—and sometimes longer—deadlines.

The deadline is important because older workweeks may continue to fall outside the recoverable period as time passes. Reporting the issue internally does not necessarily stop the statute of limitations from running. Participating in a collective action may also require an individual worker to file written consent with the court before the limitations period stops for that person.

Drivers should therefore avoid assuming they can wait until they quit, the restaurant closes, or an investigation begins. Gather your pay records, schedules, reimbursement information, and approximate employment dates as soon as possible. An employment attorney can determine the potential filing period under federal law and the laws of the state where you worked.

Can I File a Claim if I Still Work There?

Yes. Current employees may seek unpaid wages and reimbursement without first resigning. Federal law also prohibits employers from retaliating against workers for asserting wage rights, asking about their pay, filing a complaint, or cooperating with a Wage and Hour Division investigation. Protected workers can include those who make internal complaints as well as those who contact the government.

Retaliation can involve more than termination. It may include reduced hours, undesirable assignments, threats, discipline, harassment, demotion, or other adverse treatment intended to discourage a worker from pursuing legal rights.

Current employees should preserve copies of schedules, pay statements, reimbursement records, policies, and relevant communications. Keep those records somewhere you can access independently from an employer-controlled account or device. Document any sudden changes in treatment after you raise a pay concern.

If you believe your pizza restaurant has failed to reimburse your mileage and vehicle costs properly, Morgan & Morgan may be able to help. Contact us today for a free, confidential case evaluation to learn more about your rights and whether you may be owed unpaid wages.