Domino’s Pizza Underpays Delivery Drivers, Class Action Lawsuit Alleges

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Domino’s Pizza grossly underestimates how much it should reimburse its delivery workers for the miles they drive on each shift, giving itself a financial kickback at drivers’ expense, a new class action lawsuit alleges.

Plaintiff Maksudur Gazi filed the class action lawsuit against Domino’s Pizza and multiple franchises Wednesday in a New Jersey court alleging violations of the federal Fair Labor Standards Act and New Jersey wage laws.

Gazi says Domino’s operates numerous franchises, and employs delivery drivers who use their own vehicles to deliver pizzas.

“However, instead of reimbursing delivery drivers for the reasonably approximate costs of the business use of their vehicles, Defendants use a flawed method to determine reimbursement rates,” the class action lawsuit alleges. 

The flawed method provides such a low rate, the claim states, beneath “any reasonable approximation” of the expenses they incur, that the drivers’ unreimbursed expenses cause their wages to fall below the federal minimum wage. 

Gazi — who was employed by a New Jersey Domino’s from March 2017 until March 2020 — says he is bringing the action to recover unpaid minimum wages and overtime hours owed to himself and other similarly situated delivery drivers employed by Domino’s Pizza stores. 

He says Domino’s delivery drivers experience lower gas mileage and higher repair costs than the average driver, because of frequent starting and stopping of the engine, frequent braking and driving under time pressures. 

He says the IRS business mileage reimbursement rate ranged between $0.545 and $0.58 per mile while he was working, which reasonably approximated the automobile expenses incurred delivering pizzas. 

However, he was reimbursed only $0.20 per mile driven. 

“In effect… every mile driven on the job decreased his net wages by at least $0.345 per mile,” the class action lawsuit says.

All of Domino’s delivery drivers had similar experiences to those of Gazi, the claim adds. 

“They were subject to the same reimbursement policy; received similar reimbursements; incurred similar automobile expenses; completed deliveries of similar distances and at similar frequencies; and were paid at or near the federal minimum wage before deducting unreimbursed business expenses.”

Gazi is bringing the class action lawsuit as an opt-in collective action for all drivers similarly situated. He is seeking damages, fees, costs, interest and a jury trial.

Meanwhile, in 2016, a group of Domino’s Pizza drivers filed a driver tip class action lawsuit against the pizza giant. They accused one franchisee of keeping a delivery surcharge that most customers would have thought was a tip, violating Massachusetts state law.

What do you think of the allegations against Domino’s Pizza? Let us know in the comments! 

The plaintiff is represented by Jason T. Brown of Brown LLC.

The Domino’s Delivery Driver Reimbursement Class Action Lawsuit is Maksudur Gazi et al., v. MSNF Foods LLC et al., Case No. 3:21-cv-12665, in the U.S. District Court for the District of New Jersey Trenton Division

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