Wilson Pizza CK Inc. and one individual owner have been named in a proposed collective and class action alleging that the defendants enforce a “pay scheme” that fails to properly reimburse delivery drivers, causing their effective hourly pay rates to fall below minimum wage.
According to the lawsuit, the defendants operate numerous Domino’s Pizza franchises that employ delivery drivers, such as the plaintiff, who use and maintain their own vehicles to deliver food to customers. The lawsuit alleges that the defendants reimburse delivery drivers for the business use of their vehicles on a per-delivery basis that underestimates the actual expenses they incur. From the complaint:
“During the time Plaintiff worked for Defendants as a delivery driver, he was reimbursed just $1.80 per delivery and on average drove 6-10 miles per delivery. This means plaintiff was getting paid between $.30 to $.18 per mile ($1.80 divided by 6 and 10 miles respectively).”
The lawsuit compares this rate to the IRS business mileage reimbursement rate at the time, which reportedly ranged between $.56 and $.535 per mile and represents “a reasonable approximation of [the plaintiff’s] automobile expenses.”
The defendants’ insufficient “reimbursement formula” causes drivers’ pay rates to fall below minimum wage, the lawsuit claims, as drivers’ unreimbursed expenses decrease their net wages.