Pizza deliverers nationwide suing over low pay, reimbursement rates

Pizza deliverers are starting to take legal action against their employers, alleging they aren't reimbursed enough for use of their own vehicles, which results in them earning less than minimum wage.

Two drivers have sued two Papa John’s franchisees in Kentucky, joining dozens of suits filed across the country against Papa John’s, Pizza Hut and Domino’s.

Most of the lawsuits are still pending, but in 2016, Pizza Hut of America agreed to pay $3.1 million to settle allegations that it consistently underpaid drivers in Florida, while in New York a dozen Domino’s franchise owners paid a total of about $1.4 million to settle claims they violated minimum wage and overtime laws.

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New York Attorney General Eric Schneiderman accused Domino’s of “turning a blind eye to illegal working conditions.” He said that his “message for Domino’s CEO Patrick Doyle is this: To protect the Domino’s brand, protect the basic rights of the people who wear the Domino’s uniform, who make and deliver your pizzas.”

A lawsuit was filed in May against one of  Papa John’s largest franchise owners, based in Dayton, Ohio, by drivers who alleged their pay did not add up to the federal minimum wage of $7.25 or Ohio’s minimum of $8.15 per hour. Among the defendants was Serazen, which owns 73 Papa John’s stores, including 27 in Dayton and Cincinnati.

The suits against Papa John’s franchisees in Kentucky come as the parent company is fighting the fallout from founder John Schnatter’s use of the N-word during a media training session in May. He was forced to step down as chairman, and the company’s stock has fallen by about 11 percent this week.

The Kentucky cases were filed by drivers against Papa John's franchisees in Middlesboro and Paducah. Both suits were filed as potential class actions on behalf of other drivers. Neither franchise owner could be reached for comment.

Matthew Haynie, a Dallas-based lawyer for the plaintiffs, said pizza delivery drivers are among the most underpaid workers in the United States and must pay for their own vehicles, insurance and gas money to earn a paycheck.

Employers should be "reimbursing them properly,” he said. “No one should have to pay to work.”

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The suits in Kentucky and elsewhere were filed under the Fair Labor Standards Act, which was enacted by Congress to protect workers from potential exploitation and abuse by employers.

The suits say drivers for both franchises were reimbursed at such low rates for their expenses that it caused their compensation to fall below the minimum wage.

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One driver, for example, was paid the federal minimum wage of $7.25 per hour and reimbursed $1.50 per delivery, according to the suit. She drove about 4 to 6 miles per delivery, meaning she was getting paid between 25 and 38 cents per mile.

That compares to the 57 to 61 cents per mile the American Automobile Association says it costs to operate a vehicle for motorists who drive 15,000 miles per year, the suit says. And it meant Estes was losing 16 cents in net wages for every mile she drove, according to the complaint.

In their complaints, the deliverers said driving conditions for pizza delivery drivers cause even more wear and tear on their vehicles, resulting in higher costs.

They allege the defendants' “systematic failure” to adequately reimburse automobile expenses constitutes a “kickback” to the franchises.

The plaintiffs ask for compensatory damages and attorney’s fees.

Haynie said his firm has filed 30 wage-and-hour suits against Papa John’s, Pizza Hut and Domino’s franchises.