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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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20 thoughts onDomino’s Pizza Underpays Delivery Drivers, Class Action Lawsuit Alleges
I got a letter about this being a former driver and was told if I got the letter I had to do Nothing else I would be reimbursed in the lawsuit but have not heard a word since just curious
Same I’ve been trying to find an update on this and have failed since
I also got fired from Domino’s because my truck broke down on deliverys.. I had to buy a new tdelivery. I bought a new truck I was fired. My truck was in the shop only 3 to 4 days. Driver I was and underpaid and forced to clock out prior to deliverys.
Hi,
I worked for Domino’s in NJ a few years back. Noone ever contacted me about a class action. In the Domino’s I worked in the Managers made more money by shorting the drivers. If food was still in the oven, drivers were taken off the clock and put on delivery pay. Many times waiting 15 to 20 minutes for food not driving and not on minimum wage either. I was never notified of any class actions.
When I work for domino’s it was even worse than this lawsuit alleges. They paid us a flat rate of $0.80 a delivery. When you think about people who order delivery, it is usually not folks who live right around the corner from the store. After all, they’d rather just pick it up if it’s a 2 minute trip then pay the extra amount to have it delivered. Therefore, in our situation at our store, there was a high volume of orders and the majority of them for delivery went to places that were much further away than $0.80 could possibly cover. One trip in particular took me almost 18 miles around trip.. that’s marinara, a $0.60 cup to be clear. And he forgot to order it it wasn’t like we didn’t bring it to him. At any rate, my manager probably told me to go back and drop off a $0.60 cup some 18 miles from. Outrageously, not only would I not be getting a tip from the man of course but I wouldn’t even be getting $0.80 again and whilst I was doing that I would be making $5 an hour. These places are so messed up it’s unbelievable and drivers are getting abused ridiculously hard. I remember when the delivery cost had to be increased from $2.50 to $3. It all started getting tipped even less and I don’t really blame the people who ordered because you’re looking at a huge delivery fee and then you have to tip even more on top of that so a $20 order on a sudden becomes $30. The reason for the increase in the delivery fee? You’re going to love this, it was because the minimum wage went up by some 14 cents. I should get in on this lawsuit or file my own seriously please add me let’s talk I’ve got the resources now that I can assure you it’s been a little bit since I stopped working for the company but in the meantime I have incurred quite a inheritance and I’m ready to unleash it on these people
Wrongdoing rare unusual special circumstances lawsuit with no loopholes against the company as individuals employees of representing the company city county town USA affiliated with anyway shape or form attached to anyway shape or form on behalf of the people liberty justice prejudice
Please add me.
I work for Domino’s in Beebe ar im going through the same situation they are under paying us as drivers I spend more in gas then what I take home something got to give how do I claim a lawsuit against them
Es verdad competent abuse y uno no lo sabe hasta que alguien mete demanda yo tambien trabaje en domino’s pizza en Arizona
Please add me
Please add me
Please add me
I drove for Domino’s for a short time and it was never to pay that you they promised they exaggerate how much tips you’re going to get they don’t give you mileage for your car and they make you work inside the store between shift between drives which you should be getting minimum wage at least