Domino’s Hit in Delivery Driver Wage and Hour Class Action

Cowabunga Inc., the largest single owner and operator of about 100 Domino’s Pizza stores throughout Georgia, Alabama, and South Carolina, is being sued in a wage and hour class action lawsuit by a former delivery worker.

The plaintiff alleges that he and other Domino’s employees were not properly reimbursed for their time and resources when they were making Domino’s pizza deliveries using their own vehicles.

Plaintiff Chadwick H. filed this Domino’s wage and hour class action lawsuit in March on behalf of himself and a proposed Class of other similarly situated Domino’s delivery workers. He was employed as a delivery driver by Cowabunga at his local Domino’s in Savannah, GA, from about April to October 2014.

In filing this Domino’s wage and hour class action lawsuit, Chadwick alleges the pizza delivery chain violated the federal Fair Labor Standards Act (FLSA) in their unfair reimbursement policy, which applies to all Cowabunga Domino’s drivers.

Chadwick’s wage and hour class action lawsuit claims Cowabunga requires the plaintiff and other Class Members to “maintain and pay for safe, legally operable, and insured automobiles,” in order to make Domino’s food home deliveries.

Because of their job responsibilities, Chadwick and other delivery drivers rack up certain on-the-job costs, including costs for gasoline, vehicle parts and fluids, repair and maintenance services, insurance, depreciation, and other automobile expenses while delivering pizza and other food items for the primary benefit of Cowabunga, the Domino’s wage and hour class action lawsuit alleges.

Cowabunga does recognize that delivery drivers should be reimbursed for the use of their personal vehicles to make Domino’s deliveries; however, Chadwick alleges this supposed reimbursement policy is flawed, as the company reimburses drivers on a per-mile basis.

According to the Domino’s wage and hour class action lawsuit against the pizza franchises operator:

“Instead of reimbursing delivery drivers for the reasonably approximate costs of the business use of their vehicles, Cowabunga uses a flawed method to determine reimbursement rates that provides such an unreasonably low rate beneath any reasonable approximation of the expenses they incur that the drivers’ unreimbursed expenses cause their wages to fall below the federal minimum wage during some or all workweeks.”

Chadwick’s wage and hour class action lawsuit further claims Domino’s per-mile reimbursement “is far below the IRS business mileage reimbursement rate or any other reasonable approximation of the cost to own and operate a motor vehicle,” and thus is in violation of FLSA standards.

What is the Fair Labor Standards Act?

The Fair Labor Standards Act (or FLSA) is a federal law that protects employees’ rights in order to ensure workers receive fair wages, are fully compensated for all hours worked, and work in a safe work environment.  The law ultimately protects workers from potential exploitation or abuse from employers.

According to FLSA and IRS standards applicable to this wage and hour class action lawsuit, a business should use reimbursement rates of $0.55 to $0.57 per mile for an employee who is using her or his own vehicle to make work deliveries.

The Domino’s wage and hour class action lawsuit points out that the FLSA and IRS also states:

“Likewise, reputable companies that study the cost of owning and operating a motor vehicle and/or reasonable reimbursement rates, including the AAA, have determined that the average cost of owning and operating a sedan ranged between $.592 and $.608 per mile between 2012 and 2014 for drivers who drive a sedan approximately 15,000 miles per year. These figures represent a reasonable approximation of the average cost of owning and operating a vehicle for use in delivering pizzas.”

Therefore, based on these allegations, Domino’s basic per-mile reimbursement falls far below the federal minimum for employee reimbursement. In this wage and hour class action lawsuit, the plaintiff is seeking to recover unpaid minimum wages for himself as well as other Class Members who were affected by Cowabunga and by extension Domino’s unfair reimbursement policy.

This Domino’s Wage and Hour Class Action Lawsuit is Case No. 1:2015cv00828 in the U.S. District Court for the Northern District of Georgia, Atlanta Division.

Join a Free Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years, you have rights – and you don’t have to take on the company alone.

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Join a Free Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now