ATLANTA — A Georgia Domino’s franchisee is facing a proposed collective action wage lawsuit in federal court. The franchisee allegedly failed to pay its delivery drivers minimum wage, work-related expenses, and earned wages. According to the lawsuit, the franchisee’s actions violated the Fair Labor Standards Act (FLSA) and allowed the company to enjoy greater profits at the expense of its employees.
Delivery Driver Overtime Claim
The franchisee, which goes by Cowabunga Inc., Cowabunga Three Inc. and Cowabunga Four LLC, allegedly improperly calculated delivery driver compensation. The franchisee operates approximately 100 locations in Alabama, Georgia, and South Carolina and allegedly uses the same methods to calculate driver reimbursement pay at all of its locations.
According to the lawsuit, the delivery drivers, who use their own vehicles when delivering pizza, claim they were not reasonably reimbursed for the expenses associated with using their vehicles for business. These expenses include not only mileage, but insurance, maintenance costs, gasoline, and depreciation. The drivers argue that because they were not properly reimbursed for driving expenses, the costs came out of their wages. And the additional costs coming out of their wages illegally reduced their hourly rate below minimum wage.
Chadwick Hines, a delivery driver from April 2014 to October 2014, filed the lawsuit claiming he received an hourly wage of $7.25 plus tips. Additionally, Hines received roughly $1 per delivery to cover vehicle expenses. However, based on Hines calculations the company’s reimbursement rate for each mile driven during deliveries was only about 20 cents. The IRS established rate for work-related mileage is 56 cents per mile. Even if the $1 per delivery was intended to cover only mileage, the franchisee allegedly underpaid its drivers by at least 36 cents per mile. If the reimbursement was intended to cover more than just mileage, the franchisee’s wage practices undoubtedly reduced the drivers’ wages below $7.25 per hour, the federal minimum wage.
Work-Related Expenses
There are some state labor laws that do require employers to reimburse employees for such expenses as uniforms, the cost of cleaning uniforms, tools, and mileage or other work-related vehicle expenses. But under the FLSA, employers are not required to reimburse their employees for work-related expenses. However, the FLSA does require that any unreimbursed work-related expenses not reduce the employees’ hourly wages below minimum wage. This means if the employee is not reimbursed, the cost the employees pay to cover the expenses, if taken out of their wages, should not reduce their hourly rate below minimum wage.
If you believe your employer is properly compensating you for every hour you work due to uncovered or unreimbursed work-related expenses, you may have a wage or overtime claim. Contact our experienced team of overtime pay lawyers today at (855) 754-2795. Or you may complete our Free Unpaid Overtime Case Review form and our knowledgeable legal team will evaluate your claim. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.