1. Welcome to the DFA Mileage Reimbursement Plan
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2. Mileage Reimbursement
Presenters:
Ken Peebles, DFA
Hagood Tighe, Fisher & Phillips LLP
Mike Bassi, Runzheimer International
Confidential -Not for Distribution; 2010

3. This presentation is not legal advice. Please seek legal counsel..
Legal Background
Presented by:
J. Hagood Tighe, Esq.
(803)
Fisher & Phillips LLP
ATTORNEYS AT LAW
Solutions at Work®
This presentation is not legal advice. Please seek legal counsel..
Confidential -Not for Distribution; 2010

4. Legal Background
Employers are required to pay employees minimum wage (tip credit employees are not considered to be paid more than minimum wage, regardless of the amount of tips received).
Many lawsuits have been filed claiming that illegal sub minimum wages are being paid to drivers due to inadequate reimbursement for business expenses, including mileage.
Confidential -Not for Distribution; 2010

5. Legal Background
Federal law only requires reimbursement for business expenses to the extent they impact minimum wage.
The plaintiff’s attorneys in some cases have claimed that the mileage reimbursement should be at the IRS rate.
However, the US DOL regulations say that reimbursement can be for actual costs or a reasonable approximate.
Confidential -Not for Distribution; 2010

6. Legal Background
To minimize the risk that your business will be the target of a lawsuit, you need to ensure that you are compliant with the law.
The courts have not yet ruled in these cases as to exactly how you should reimburse for mileage.
Confidential -Not for Distribution; 2010

7. Legal Background
An expert estimate of vehicle operating costs should allow you to demonstrate a good faith effort to reimburse drivers for the reasonably approximate cost of the use of their vehicles.
This will mean a move to per mile reimbursement.
Many franchisees have already done this.
Confidential -Not for Distribution; 2010

8. Legal Background
Questions and Answers

9. DFA / Runzheimer Program
Based on a request of numerous Franchisees for help and guidance on driver compensation
After discussing with DPLLC, the DFA decided to take the lead on finding external support for Franchisees
Our research and Franchisee recommendations led us to contacting Runzheimer
Runzheimer is considered to be the leader in mileage reimbursement analysis for employers
Confidential -Not for Distribution; 2010

10. About Runzheimer
Trusted provider of accurate, fair and defensible geographical cost information since 1933
Work with IRS to establish cent-per-mile rates
Business Auto Allowance consultants to 1,200 businesses with over 125,000 field “drivers”
Analyze needs and objectives
Policy review – vehicles or allowances
Tax issues surrounding choices/Accurate payments
Cost controls and employee retention
Develop specific programs and policies
Confidential -Not for Distribution; 2010

11. The Runzheimer Plan of Vehicle Standard Costs
Comprehensive Reimbursement Policy
Drive personal vehicle for company travel
Reimbursed based on a “standard vehicle”
A vehicle that is reasonable for the business task
Local costs are recognized
Differing business mileage is recognized
Equitable to all drivers
Confidential -Not for Distribution; 2010

12. Both costs are then reduced to a Cents-Per-Mile rate for deliveries
What are Vehicle Costs?
Dual Nature of Costs
Both costs are then reduced
to a Cents-Per-Mile rate for deliveries
Confidential -Not for Distribution; 2010

13. Cents Per Mile The IRS Optional Standard Mileage Rate
50 cents/mile for 2010 can be paid tax-free
A “safe harbor” for taxpayers without receipts
Based on an average vehicles, average location
Lags Market by up to 14 months
Confidential -Not for Distribution; 2010

14. Confidential -Not for Distribution; 2010

15. Reimbursement Data by Location, Data Run provided to DFA
Confidential -Not for Distribution; 2010

16. Runzheimer International
Questions and Answers

17. DFA/Runzheimer Program
Program is available to all 2010 DFA members
The DFA is the clearing house and has taken on the administrative duties
The DFA is also supplementing the actual cost
The cost per store for DFA members is only $38
All of the participating Franchisee’s stores must be included in the analysis
Each participating Franchisee receives easy to use instructions and documents to submit their data.
Confidential -Not for Distribution; 2010

18. Process and Documents Franchisee collects vehicles’ make, model & year
DFA provides one spreadsheet with four documents
1st is a list of representative make and models and what size vehicle category they are considered
2nd is a ten step easy to use instructional guide
3rd is used to input vehicle information
4th is your order form and it lists your actual store locations and the average age and size of the vehicles used in your organization
Confidential -Not for Distribution; 2010

19. 1st Document
Confidential -Not for Distribution; 2010

20. 2nd Document
Confidential -Not for Distribution; 2010

21. 2nd Document
Confidential -Not for Distribution; 2010

22. 3rd Document
Confidential -Not for Distribution; 2010

23. 4th Document
Confidential -Not for Distribution; 2010

24. DFA Results Report to Franchisees
Confidential -Not for Distribution; 2010

25. Program Facts & Recap Open to 2010 DFA members at $38 per store
Eight week sign up period that ends on 2/12/09
Master DFA order form sent to Runz every Friday
Turnaround time is 10 working days from the Friday that order was submitted as part of Master
Payment is due when Franchisee places order
Franchisees receive report with their specific results
Runzheimer’s analysis is well known & respected and very defensible with various agencies
Confidential -Not for Distribution; 2010

26. Next Steps Ken@dominosdfa.com Want to sign up? Need more information?
Need support afterwards with the documents?
Confidential -Not for Distribution; 2010

27. DFA/Runzheimer program
Questions and Answers
Confidential -Not for Distribution; 2010