When gas prices go up, how much should mileage go up?


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PostPosted: Thu Jul 03, 2014 9:59 am
gregster wrote:So... How many cents per mile are you being paid???


My date for this year so far is about .22 per mile.

elric92 wrote:
tompace wrote:Well, they have been pulling it from the pulse system, which does use Bing for gps and such in store, so I'll buy that the mileages are accurate...at least as accurate as Microsoft can be...but each store is different and i know we have the largest MR in the atlanta area (its calculated on a per store basis, not company wide)
That being said, yes they are only accounting for fuel usage, not other expenses.

How often is this system updated with accurate information? Does your managers update the vehicle make/model/yr each time a driver changes vehicles? I know of two drivers at my location that use two different vehicles, only one of them is listed in what you would call the "pulse system". Does should the employee driving the 2077 Ford F-150 be expected to lose money versus the employee who drives a 1994 Geo Metro?

What they are doing is assuming a "shortest distance driven" statistic. That is not always the case when you are out on the road. What they are doing is assuming the best case driving scenario, which miraculously benefits the employer.

Mileage reimbursement should pay for more than just the fuel put in the vehicle, it should pay for the actual per mile cost for operating the vehicle

Until you know how much you are being reimbursed, per mile, then it is difficult to determine if the rate at which you are being reimbursed is fair and equitable.

Gonna answer your questions in A/B/C order

A) they update the list each year when they adjust mileage. Each store has a different MR, which is determined by the AVERAGE mpg of that store's drivers (so more vehicles with a low mpg = higher MR) so that geo metro guy will be benefiting from the guy driving the f150. Our store also has a few drivers who drive multiple vehicles (me for one, I alternate between my fiancee's grand caravan and roomate's camry) and the manager uses the higher mpg one.

B) The Bing system we use is actually set to quickest drive time, not shortest distance, as speed is priority in our profession. (I can verify this myself as i've seen it take the driver on a much longer route to avoid traffic delays)

C) Yeah I know, even said that twice :D However, the point that I was making is that this system is better than some arbitrary numbers i've seen on the boards here. Currently we are getting 1.87 for a single, 2.84 for a double, and 3.51 for 3+ orders. (its VERY rare that we take a double, let alone triple.) Keep in mind, this is still from a year ago's survey, and the increase in gas prices combined with the number of lower mpg vehicles at our store, means that our MR is going to go up (or at least it better)

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PostPosted: Thu Jul 03, 2014 3:33 pm
tompace wrote:C) Yeah I know, even said that twice :D However, the point that I was making is that this system is better than some arbitrary numbers i've seen on the boards here. Currently we are getting 1.87 for a single, 2.84 for a double, and 3.51 for 3+ orders. (its VERY rare that we take a double, let alone triple.) Keep in mind, this is still from a year ago's survey, and the increase in gas prices combined with the number of lower mpg vehicles at our store, means that our MR is going to go up (or at least it better)


Here's the rub... ALL of the systems used, excepting maybe the rate which PD2 is compensated (although it is weird, I believe he effectively gets the IRS standard rate, please correct me if I am mistaken PD2), use arbitrary numbers. The "quickest route" is still arbitrary, since that route might not be taken by the driver. An average of all vehicles used in a year is still arbitrary, since each employee does not operate the average vehicle. There is a reason why the employer seeks to use these arbitrary numbers; because they benefit the employer.

As of right now there is one company that all the employer's use to calculate their mileage reimbursement, or at least one company that they use to defend their mileage reimbursement rate schemes, that company is the same company that the US Government, in the form of the Internal Revenue Services, uses to set their IRS standard rate. The rate in which the IRS believes, based on calculations from this one company, is the AVERAGE cost of operating a personally owned vehicle for the primary benefit of your employer.And this year that rate is $0.56 per mile. Yet this same company is willing to argue in court that it costs delivery drivers significantly less to operate their vehicle than the what they have determined for the IRS.

2014 Standard Mileage Rates
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.


Every scheme used by these employer are schemes meant to benefit the employer by allowing them to pay a LOWER average. I challenge you, and anyone else, to find an employer that uses a scheme that pays MORE THAN the IRS standard rate. The problem with these schemes is that they effectively set up a condition of employment where employees are expected to incur costs that their employer should be incurring, by purchasing and maintaining their own fleet of vehicles, or at the very least should be expected to pay the Standard IRS rate.

Also remember that the employer also benefits from the employee's own personal use of the vehicle; since every mile driven by the employee for their personal use effectively lowers the cost of the vehicle's operation.

Edit: OHH... another thought... how do you know that they are using the numbers they tell you they are using? Have you audited their numbers? Have you had an independent third party audit their calculations? No and No. And if you tried to have the calculations audited you'd be stopped cold by some claim of "corporate confidentiality"
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PostPosted: Thu Jul 03, 2014 3:57 pm
tompace wrote:My [r]ate for this year so far is about .22 per mile.


That is WELL below the rate all the lawsuits have settled on! This is definitely a case that I bet the lawyers would LOVE to take a shot at! Are you interested?
"If you ain't on the road, you ain't makin' money!" - gregster

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PostPosted: Thu Jul 03, 2014 5:31 pm
tompace wrote:A) they update the list each year when they adjust mileage. Each store has a different MR, which is determined by the AVERAGE mpg of that store's drivers (so more vehicles with a low mpg = higher MR) so that geo metro guy will be benefiting from the guy driving the f150. Our store also has a few drivers who drive multiple vehicles (me for one, I alternate between my fiancee's grand caravan and roomate's camry) and the manager uses the higher mpg one.

I should have caught this one earlier. The vehicle that receives a lower MPG is not necessarily the vehicle that experiences a lower per mile cost associated with operating the vehicle. By setting up the scheme in this way the employer is... AGAIN... setting up the scenario which best benefits them.

Example: I own a 2012 Prius C and a 2003 VW GTI; the GTI gets worse gas mileage, but the Prius C costs more per mile to operate.

And depending on the age of those vehicles that you operate your cost per mile could be higher on the Camry, even though the Caravan gets worse gas mileage.
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PostPosted: Thu Jul 03, 2014 6:53 pm
I'd love to get this fixed. I was actually thinking about trying to go about it myself anonymously because I didn't think a lawyer would be interested in such a "small" case.

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PostPosted: Thu Jul 03, 2014 9:12 pm
tompace wrote:I'd love to get this fixed. I was actually thinking about trying to go about it myself anonymously because I didn't think a lawyer would be interested in such a "small" case.

I cannot stress how... don't try to do it anonymously. Just don't. You might think that will protect you, but if your employer wants to find out who is trying to stay anonymous, they WILL find out. Be aboveboard in everything you do. Doing it aboveboard also provides you with a level of protection if your employer suddenly decides to terminate you; if you attempt to do it anonymously that protection most likely will not exist.

93 locations is not huge, but it's a hell of a lot bigger then my franchise, which was something on the tune of maybe 25 locations (off the top of my head I do not remember), but the effect was felt beyond my franchise alone. We went from a max (which we were not receiving at anytime the statutory limits applied) of $0.25 per mile to $0.375 per mile

There is a lot I could tell you about what to expect if you decide to do this... so can Gregster. Gregster might also have other options that you could pursue (DOL)
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PostPosted: Fri Jul 04, 2014 1:38 am
tompace wrote:I'd love to get this fixed. I was actually thinking about trying to go about it myself anonymously because I didn't think a lawyer would be interested in such a "small" case.


Trust me, this is NOT a small case anymore!

Cockrill v. La Raza Pizza, Inc. operates approximately 61 Pizza Hut franchise restaurants in Indiana, New Mexico and Texas.


and

The law firms of Paul McInnes LLP and Weinhaus & Potashnick have filed a class-action lawsuit against Daland Corporation, a company based in Wichita, Kan., which owns around 106 Pizza Huts in 13 states.

Peru Pizza Co. Inc., which is owned by the Daland Corporation, and owns the Peru Pizza Hut, was specifically named in the lawsuit.

The lawsuit claims the corporation paid its delivery drivers on average 22 cents per mile, which was insufficient to cover drivers’ costs to buy gas and maintain their vehicles.


and

The law firms Paul McInnes LLP... ..., have filed a lawsuit against
American Pizza Partners
, L.P., American Restaurant Partners, L.P., and RMC American Management, Inc., franchisees of approximately 130 Pizza Hut
restaurants in Colorado, Georgia, Louisiana, Montana, Oklahoma, Texas and
Wyoming for failing to pay minimum wage to their delivery drivers.


The above cases and MANY others, including cases that have settled for MILLIONS of Dollars can be viewed here:

Lawsuits against Domino's, Pizza Hut, and Papa John's
"If you ain't on the road, you ain't makin' money!" - gregster

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