The New York Post reported on the growing trend of delivery worker lawsuits where food-delivery services are “stiffing” their workers to remain competitive. Louis Pechman, founder of waiterpay.com, was quoted in the article.
Waverly Restaurant, a diner in New York City’s West Village, was found guilty of retaliation against former workers in a decision by Judge Steven Davis of the National Labor Relations Board. After a three-day trial, Judge Davis found that the restaurant reduced worker hours because they had filed a federal court wage theft lawsuit against the restaurant for overtime, minimum wage, and other violations. The Judge also found that management had pressured waiters, delivery workers and bussers involved in the FLSA lawsuit to drop the suit. The restaurant workers were represented at the trial by Vivianna Morales and Louis Pechman, founder of waiterpay.com.
Delivery workers for Fresh Direct, an online food and grocery retailer, have sued for unpaid wages and violations of the overtime provisions of the Fair Labor Standards Act (“FLSA”) and New York Labor Law. According to the Complaint filed in Manhattan federal court by the delivery workers, Fresh Direct misled its customers in believing that the delivery charge it imposes on customers is a gratuity. Attorneys for the delivery workers claim that the company’s acceptance and retention of gratuities belonging to the delivery workers violate the New York Labor Law.
Delivery workers at Schnipper’s Quality Kitchen in New York, famous for having the best Sloppy Joe Sandwiches in New York, have sued the restaurant for failing to pay them minimum wage and overtime pay, and for tip theft.
Attorneys for the workers claim that the restaurant paid the delivery workers as “tipped” employees when they actually spent more than 20% of their work day performing work in the kitchen. Lawyers for the workers also charge that the restaurant failed to pay the workers New York spread of hours pay and also skimmed tips from the workers.