Jason's Deli Operating Company Slammed with Reimbursement Class Action

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Deli Management, Inc., the operating entity of roughly 158 Jason’s Deli restaurants scattered across 14 states, is the defendant in a proposed class action lawsuit that claims it uses a “flawed method” to determine reimbursement rates for delivery drivers’ vehicle expenses. According to the 17-page lawsuit, the defendant’s “flawed method” provides “such an unreasonably low rate beneath any reasonable approximation of the expenses” incurred by proposed class members that the workers’ wages fell below the federal minimum benchmark.

The two named plaintiffs behind the suit claims the defendant’s driver reimbursement policy repays drivers on a per-delivery basis. The problem with this, the lawsuit claims, is that the equivalent per-mile reimbursement is “far below the IRS business mileage reimbursement rate” or any other reasonable estimate of the costs of owning and operating a vehicle.