A group of Domino’s franchises in Illinois have agreed to pay $807,500 to a settle a class action lawsuit brought on behalf of former delivery drivers who alleged the pizza chain denied them proper minimum wages, in violation of the Fair Labor Standards Act (FLSA) and state labor laws.
According to the lawsuit, which included 16 Dominos stores and 250 current and former delivery drivers, the Domino’s improperly deducted a tip-credit from the wages of the delivery drivers, despite them spending nearly 30% of their time working inside the restaurants in a non-tipped capacity. 80/20 tip credit rule prohibits employers from paying their tipped employees at the subminimum wage rate when they require tipped employees to perform non-tipped duties for over 20% of the employees’ workday during the week, even if those duties are related to their tipped positions.
On top of this deduction, the drivers were required to pay out-of-pocket for various expenses, including gasoline, car repair and maintenance and other job-related expenses. Dominos also took portions of the drivers’ paychecks were donated to Domino’s Parent Foundation. The combination of these deductions resulted in their hourly wages falling below the applicable minimum wage.
Dominos is among various companies facing similar lawsuits brought by delivery drivers, including Pizza Hut and Papa Johns. If you are a delivery driver with questions about your wages, please contact the attorneys at Pechman Law Group to see whether you have a claim for wage theft.
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