Domino’s Drivers to Receive $3M to Settle Claims of Unpaid Wages

A Domino’s Pizza franchise owner has agreed to settle claims of unpaid wages for over 3,000 of its delivery drivers. In March of 2019 pizza delivery drivers brought a class and collective action in North Carolina under the Fair Labor Standards Act (“FLSA”) and the North Carolina Wage and Hour Act (“NCWHA”) that alleged this Domino’s franchise, Team Carolinas, failed to reimburse their expenses in turn bringing their pay well below the minimum wage. The $3 million payout will settle these claims for all current and former delivery drivers who worked for Team Carolinas Domino’s locations between March 2016 and April 2020.

The lawsuit had specifically alleged that because delivery drivers were paid on a per delivery or per mile basis, neither of which was enough to reimburse the drivers for their delivery expenses. These Domino’s delivery drivers claimed that by not sufficiently reimbursing drivers for delivery expenses, such as vehicle maintenance and insurance, Team Carolinas failed to pay minimum wage in violation of the FLSA and North Carolina and South Carolina wage laws. Employers must reimburse their employees for these costs, especially if these costs reduce earnings below the minimum wage. The U.S. District Judge that approved the $3 million settlement noted it was a fair and reasonable resolution to an otherwise risky trial.

Unfortunately, wage and hour violations of this nature are still all too common in the food service industry. If you are a delivery driver and incur costs, such as maintenance, gas, etc., without the proper reimbursement by your employer, you may be owed significant wages. If you would like to discuss your potential claims, our employment law firm, Fitapelli & Schaffer, LLP, offers a free and confidential consultation at (212) 300-0375. You can also view our website for additional information regarding your rights here.