2023 Labor Laws for Delivery Drivers to Keep Handy

With the rise in demand in the industry, delivery drivers are required to step up their work to match the industry’s demands.

However, you need to be safe as well because unfair wages and employee treatment can land your delivery business in legal trouble.

But no worry, as applying state labor laws such as 180 federal laws by the United States Department of Labor (DOL) will protect your delivery drivers. It ensures that their rights are intact and drivers not exploited. 

So, without further ado, let’s get the learning started about labor laws for delivery drivers.

What are Labor Laws? 

The labor laws refer to the body of legislation that covers different points that impact the worker’s well-being and conditions.

The different factors targeted in the labor laws are the worker’s pay, working conditions, benefits, terms of employment, workweek standards, trade unions, and social security.

The laws aim to protect the worker’s rights and ensure companies don’t take unfair advantage of their workforce. 

For example, the labor law ensures that the workers are paid a minimum wage and eligible for different benefits to help them cover their expenses and live a sustainable life.

Labor laws vary from country to country. Here’s an overview of the different labor laws followed by countries globally.

Labor laws in different countries

Labor laws in different countries for delivery drivers
United States The United States Department of Labor offers a country’s labor laws database. The topics covered are hours and wages, worker compensation, unions, workplace safety, health, etc. The summary of the labor laws is available in the public domain on the Department of Labor website.
United Kingdom The United Kingdom’s government has a similar database that provides an overview of the worker’s rights. The mentioned points are employment contracts and working hours, payroll, holiday entitlement, staff dismissals, redundancies, and worker health and safety.
Australia The Australian Trade and Investment Commission handles the worker’s rights in the country. They also oversee important health and safety, employment conditions, and worker compensation.
Canada Canada’s federal labor laws cover almost the same points as the U.S., U.K., and Australian labor laws. The governing body includes working hours, vacation days, termination of employment, employees’ wages and deductions, etc.

Fair Labor Standards Act (FLSA)

Being an independent contractor or a small delivery business owner, you should be aware of the most critical pieces of legislation in the United States, i.e., the Fair Labor Standards Act (FLSA).

The law touches on different topics like minimum wage, record-keeping, overtime pay, and limitations on youth employment. The law also states that all nonexempt employees (who work a minimum of 40 hours per week) are entitled to minimum wage.

The minimum wages are calculated after subtracting the unreimbursed costs from your earnings.

But the FLSA applies to specific work agreements, and not all delivery drivers can be covered under the law.

FLSA Impact on Delivery Drivers

The FLSA law applies to drivers who are established employees and have an employment contract with your delivery business. The law doesn’t apply to independent contractors with a contract agreement with the firm.

For example, food delivery drivers working for a specific restaurant will be affected by FLSA. 

  • The delivery driver can calculate the expenses incurred during the business operations, like fuel usage, vehicle parts, auto insurance, and car repairs.
  • The employers should reimburse expenses if the delivery drivers use their vehicles for the delivery process.

Now let’s go through the major labor laws for delivery drivers that can help you follow the rules and regulations.

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Major Labor Laws For Delivery Drivers 

As you know, over 180 federal laws are enforced by the DOL, covering over 150 million workers in the country.

We have filtered the major laws applicable to the delivery drivers.

1. Wages and Hours

The Fair Labor Standards Act (FLSA) defines the overtime pay and wages standard. It affects most public and private employment. The Wage and Hour Division manages the act and requires employers to pay the minimum wages to the employees.

Wages and Hours for delivery drivers

The set minimum wages and hours can ensure that the employees don’t get exploited and are paid for the hard work put in. According to the federal act, if the employee is working overtime, the employer has to pay one-and-half-times than the regular rate of pay to the employees.

The non-exempt workers are entitled to pay a minimum wage of not less than $7.25/ per hour. However, the FLSA does not count overtime work on weekends, rest days on regular days, and holidays.

Also, it includes hours that employees have spent on premises, in their specific workplace, and on duty for work.

Every employer under FSLA must keep records of the wages and hours of certain records of employees as set forth in the Department of Labor’s regulations. 

2. Workplace Safety and Health

The Occupational Safety and Health Administration administers the Occupational Safety and Health (OSH)Act. 

The safety and health conditions of the employees are checked under the law, and different standards are set that the employer has to adhere to.

An employer must ensure the basic safety standards that ensure a healthy and safe working environment for the employees. 

Following are the acts fall into workplace safety and health:

  • Occupational Safety and Health – Occupational Safety and Health Act
  • Mine Safety and Health – Mine Safety and Health Act
  • Child Labor Protections (Nonagricultural Work) – Fair Labor Standards Act – Child Labor Provisions

The workplace and safety conditions in private industries are regulated by OSH or OSHA-approved acts. Half of the company employees in the USA come under OSHA’s jurisdiction except for a few public employees, transportation workers, miners, and self-employed. 

Every workplace will require to follow their suitable and preferable acts for safety and health. But they must ensure that they follow at least one act in their organizations. Because if some mishap takes place, businesses will land up in legal problems and face licence challenges.

3. Workers’ Compensation

Employees working for a private company or a state government can contract the workers’ compensation program to avail of the benefits. 

The employers should provide the required compensation for the damages incurred during time-sensitive deliveries by the delivery drivers. Different insurance policies can help employers to handle this aspect.

Different major laws of the department of labor acts like the Longshore and Harbor Workers’ Compensation Act, Energy Employees’ Occupational Illness Compensation Program Act, Federal Employees’ Compensation Act, and  Black Lung Benefits Act come under the worker’s compensation laws.

Apart from these, different federal laws can be applied to delivery drivers in the United States. Once you provide your drivers with the best working ecosystem, they can deliver maximum results and enhance delivery business.
You can also provide them with modern route planning and optimization software to remove inefficiencies and human errors which will help to boost your business operations.

How Upper Can Help You Manage Your Workforce Effectively? 

Upper Route Planner is an advanced route planning and optimization software that can assist your delivery driver in increasing their efficiency and reducing fuel costs.

The route planner helps to plan and optimize routes efficiently. You can dispatch multiple routes to numerous drivers in a single click.

Moreover, with Upper, you can schedule the delivery in advance, so the drivers will be aware of the upcoming deliveries. You can select preferences for delivery drivers such as scheduled time, curbside delivery, priority status, and adjusted stops.

Also, drivers can capture proof of delivery with photos or digital signatures. So, as soon as you will record a delivery proof, it will automatically get saved in our cloud-based software. As a result, you won’t have to deal with false claims.

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FAQs

You can find labor law information in the United States on the Department of Labor website.

The labor law information in Australia is available on the Australian Trade and Investment Commission website.

The delivery reimbursement occurs when the independent contractor or delivery driver asks for the personal delivery expense of vehicle repair, fuel cost, etc. The reimbursement rate can differ, and delivery drivers must calculate the actual expenses to gain the benefits. They can also calculate the exact depreciation or rapid deterioration cost of their own car and include it in the reimbursement cost.

The labor laws don’t apply to independent contractors because they are not tipped employees and are bound with the delivery firm through a legal contract. They can operate based on the IRS standard rate and get incentives based on the delivery route sales.

You can protect your drivers with legal laws. You need to ensure that your drivers are carrying legal documents such as a driving licence or government ID. If your driver falls into a legal problem, contact a legal entity to fix it.

An average hourly wage rate of pizza delivery drivers is $10- $13. Moreover, an average pizza delivery driver earns $22,573 in the United States. Pizza is one of the most ordered food in delivery in the USA.

Conclusion

Being a professional business owner, you must adhere to the labor laws for delivery drivers to protect them. However, a professional delivery management software will help you to ensure a minimum hassle and maximum desired output.

By integrating professional software like Upper Route Planner, you can enhance delivery driver productivity and achieve new business heights. Even you can generate detailed reports to check out how well your team is performing. So, why wait? Avail of a 7-day FREE trial now to explore its benefits.

Author Bio
Rakesh Patel
Rakesh Patel

Rakesh Patel is the founder and CEO of Upper Route Planner. A subject matter expert in building simple solutions for day-to-day problems, Rakesh has been involved in technology for 30+ years. Looking to help delivery businesses eliminate on-field delivery challenges, Rakesh started Upper Route Planner with the ultimate goal of simplistic operations in mind.

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