A Colorado pizza delivery driver, Steve Mighell, won an appeal in the Tenth Circuit Court of Appeals regarding his minimum wage claims against Papa John's franchisee HPG Pizza. The lower court had dismissed his case for lack of standing, but the appellate panel unanimously reversed, finding that the district court improperly decided a merits question during its standing analysis. Mighell alleged his employer failed to adequately reimburse vehicle expenses, effectively reducing his hourly wage below the federal minimum. The court remanded the case, allowing the district court to properly address the merits of his claims rather than prematurely applying Colorado's tip credit to dismiss the lawsuit.

For employers, the exposure rarely ends with one driver. Wage claims like these are often brought as FLSA collective actions, Rule 23 class actions, or hybrid actions, where one employee's complaint can sweep in similarly situated worker. Multi-year look-back periods, liquidated (double) damages, and the plaintiff's attorneys' fees can turn a per-hour discrepancy of a few dollars into a six- or seven-figure problem. Reimbursement practices that shortchange one employee usually shortchange them all, which is exactly what makes these cases attractive to plaintiffs' counsel.

Practice tip: When was the last time you reviewed your employee reimbursement policies? Make sure they are up-to-date and in compliance with federal and state law.