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Proposed collective action alleges Papa John’s not properly reimbursing delivery drivers

SOUTHEAST TEXAS RECORD

Sunday, December 22, 2024

Proposed collective action alleges Papa John’s not properly reimbursing delivery drivers

Federal Court
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HOUSTON - An opt-in collective action has been brought on behalf of all Papa John’s delivery drivers who are allegedly not being properly reimbursed. 

Seeking to recover unpaid minimum wages, Miracle Harris, individually and on behalf of similarly situated persons, filed a Fair Labor Standards Act complaint against Papa Texas on April 27 in the U.S. District Court for Southern Texas, Houston Division. 

According to the complaint, instead of reimbursing delivery drivers for reasonably approximate costs of the business use of their vehicles, Papa John’s uses a “flawed method” to determine reimbursement rates that neither reimburse the drivers for their actual expenses, nor at the IRS business mileage rate which is legally required and a reasonable approximation of those expenses. 

“Defendant’s delivery driver reimbursement policy reimbursed drivers on a per-mile basis, but the reimbursement is not based on delivery drivers’ actual expenses,” the suit states. “Moreover, the reimbursement amount is below the IRS business mileage reimbursement rate or a reasonable approximation of the cost to own and operate a motor vehicle. 

“This policy applied to all of Defendant’s delivery drivers.” 

Harris alleges the under-reimbursement causes delivery driver wages to fall below the applicable minimum wage.

“Defendant’s reimbursement policies do not reimburse delivery drivers for even their ongoing out-of-pocket expenses, much less other costs they incur to own and operate their vehicle, and thus Defendant uniformly failed to reimburse its delivery drivers at any reasonable approximation of the cost of owning and operating their vehicles for Defendant’s benefit,” the suit states. 

“Defendant’s systematic failure to adequately reimburse automobile expenses constitutes a ‘kickback’ to Defendant such that the hourly wages it pays to Plaintiff and Defendant’s other delivery drivers are not paid free and clear of all outstanding obligations to Defendant.”

The suit seeks compensatory damages, liquidated damages, costs of litigation and attorney’s fees.

Attorneys C. Ryan Morgan and Jolie Pavlos of the Orlando law firm of Morgan & Morgan represent the plaintiff. 

Case No. 4:23-cv-01564

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