Benton v. Deli Management, Inc.

396 F. Supp. 3d 1261 (2019)

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Benton v. Deli Management, Inc.

United States District Court for the Northern District of Georgia
396 F. Supp. 3d 1261 (2019)

Facts

Nial Benton and others (collectively, the drivers) (plaintiffs) worked as delivery drivers for Deli Management, Inc., doing business as Jason’s Deli (Jason’s) (defendant). Jason’s required the drivers to provide operable, safe, and legal vehicles to make deliveries. However, Jason’s did not reimburse the drivers for insurance, registration, or other vehicle-related costs. The drivers brought a class-action suit against Jason’s under the Fair Labor Standards Act (FLSA), asserting that Jason’s failure to reimburse vehicle-related fixed costs (e.g., insurance and registration) drove the drivers’ wages below the FLSA-mandated minimum hourly wage. The drivers claimed that paying their fixed costs resulted in a kickback to Jason’s of a portion of the drivers’ wages in violation of the FLSA’s antikickback provision. Jason’s moved for summary judgment, arguing that it should not be required to reimburse drivers for vehicle-related fixed costs.

Rule of Law

Issue

Holding and Reasoning (Batten, J.)

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