Papa John’s Franchisee Agrees to $2.1 Million Settlement for Pizza Delivery Drivers

Posted by:

A federal judge in Idaho granted preliminary approval to a $2.1 million settlement resolving wage claims against a group of Papa John’s franchise operators. The agreement will benefit nearly 3,000 current and former pizza delivery drivers who alleged that the company’s pay policies violated of federal and state labor laws.

What Wage Claims Did Papa John’s Delivery Drivers Make?

The lawsuit claimed that unreimbursed expenses, including mileage, gas, and vehicle maintenance, reduced drivers’ pay and caused wages to fall below the legal minimum. Workers also alleged that they were not properly paid overtime.

How Can Vehicle Expenses Affect Minimum Wage?

Court documents state that the settlement covers drivers who worked at franchise locations in Idaho, Colorado, Kentucky, New York, and North Dakota during the covered period. Individual payments depend on factors including hours worked and employment location.

Who Is Covered by the Proposed Settlement?

The case illustrates how unreimbursed work expenses can affect a delivery driver’s effective pay and why wage calculations may require looking beyond the stated hourly rate.

An inquiry doesn’t establish that a claim exists, guarantee that the firm can accept the matter, or create an attorney-client relationship. This page provides general information, not legal advice. Don’t send confidential or time-sensitive information through an online form. Prior results don’t guarantee a similar outcome.

FREQUENTLY ASKED QUESTIONS

Can unreimbursed vehicle expenses cause a pizza delivery driver’s pay to fall below minimum wage?

Yes, in some circumstances. When employees use their own vehicles for work, required business expenses can become relevant if those costs effectively reduce wages below the applicable minimum wage. Delivery driving can involve gasoline, maintenance, depreciation, insurance, and other vehicle-related costs. The Papa John’s litigation described in the article centers on allegations that the reimbursement method didn’t fully cover drivers’ automobile expenses, leaving their net wages below the federal minimum wage.

Does a pizza delivery driver have to be reimbursed at the IRS mileage rate?

Not necessarily. The legal question is generally whether the employer’s reimbursement method leaves a covered employee receiving at least the required minimum wage after work-related expenses, not simply whether the employer used the IRS mileage rate. Different cases have disputed how vehicle expenses should be reasonably approximated.

What records can help a delivery driver evaluate a mileage reimbursement claim?

Useful records can include pay stubs, mileage or delivery logs, reimbursement statements, schedules, app records, and documents showing the reimbursement formula used by the employer. Receipts and records for gasoline, maintenance, tires, insurance, registration, and other vehicle expenses may also provide context.

What is the difference between a class action and an FLSA collective action for delivery drivers?

The procedures are different. In an FLSA collective action, workers generally must affirmatively opt in to participate in the federal wage claim. A Rule 23 class action for state-law claims generally follows an opt-out structure after a class is certified. Some wage cases pursue both types of claims at the same time. That distinction matters because a worker’s rights and deadlines can depend on which claims, employers, states, and time periods are covered by a particular lawsuit or settlement.

CONTACT FITAPELLI & SCHAFFER LLP

Thank you! Your email has been delivered.

Fitapelli & Schaffer, LLP - Employment Lawyers
28 Liberty Street
New York, NY 10005
(212) 300-0375
(212) 481-1333

FREE CONSULTATION

212.300.0375