Papa John’s Sued by Former Delivery Drivers Over Allegedly Inadequate Reimbursement Rates

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Papa John’s International, Inc. is facing a proposed class action that alleges the restaurant chain systematically deprives delivery drivers of proper wages by failing to adequately reimburse them for business expenses.

Behind the case are three former drivers who worked for Papa John’s out of Kentucky, Colorado and Missouri, respectively. According to the suit, Papa John’s drivers receive an hourly tip-credited rate and are reimbursed a flat amount per delivery for expenses associated with using their own vehicles, including the cost of gas, wear and tear, insurance, and repairs.

The plaintiffs claim their net hourly wages took a hit due to the defendant’s inadequate reimbursement policy. Specifically, the complaint alleges that as of April 21, 2017, the defendant reimbursed drivers an average of just $1.20 for each delivery, or 24 cents per mile. The case claims this amount is less than half of the rate the IRS estimates would reasonably repay workers for vehicle-related expenses.

The plaintiffs argue that Papa John’s alleged failure to reimburse them for their expenses resulted in their pay falling well below the applicable minimum wage, with one plaintiff even alleging he averaged a loss of about nine cents per hour on the job, as his vehicle costs were higher than his total income.