The United States Department of Labor (DOL) enforces and administers over 180 federal laws.
With the rise in demand of the delivery industry, the delivery drivers must step up their work to match the industry’s demand. These state labor laws apply to delivery drivers to ensure their rights are intact and they are not exploited.
Being a small delivery business owner, you should follow the labor laws for delivery drivers that can help them deliver optimized performance and results.
Unfair employee treatment and not paying the minimum wage to your delivery driver can land your business in legal trouble.
To avoid the hassles, you should be aware of different labor laws that apply to your delivery driver that can help you scale your business operations.
So, without further ado, let’s get the learning started.
Table of Content
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.
The labor laws vary from country to country. Here’s an overview of the different labor laws followed by countries globally.
1. 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.
2. 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.
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’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, pizza 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.
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 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.
2. Workplace Safety and Health
The Occupational Safety and Health Administration administers the Occupational Safety and Health 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.
3. Workers’ Compensation
Employees working for a private company or a state government can contract the workers’ compensation program to avail 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 the aspect.
Different 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 output and help you scale your business operations.
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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 approximate expenses to gain the benefits. They can also calculate 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.
Being a professional business owner, you must adhere to the labor laws for delivery drivers that can help you create a happy and desirable work ecosystem.
You can also integrate professional software like Upper Route Planner to enhance delivery driver productivity and achieve new business heights.
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