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Main image for Domino’s Franchise Operator Settles Wage Suit With Delivery Drivers
News

Domino’s Franchise Operator Settles Wage Suit With Delivery Drivers

New Jersey Law Journal

3.16.2017

An operator of 26 Domino’s Pizza franchises has agreed to pay $317,500 to settle a suit claiming it paid delivery drivers less than minimum wage.

The suit in Jabrani v. Miles Enterprises claimed that drivers’ compensation falls below federal and state minimum wage levels after factoring in unreimbursed vehicle expenses and uniform purchases. The proposed settlement, which was filed Wednesday and is subject to approval from Chief U.S. District Judge Jerome Simandle, includes $5,000 for named plaintiff Kais Jabrani, $105,833 in counsel fees, and $15,000 in counsel expenses, leaving roughly $192,000 to be distributed among the 160 delivery drivers who opted in to the settlement. Drivers who opted in will be paid based on a formula considering the total number of deliveries they performed and how much they were reimbursed for vehicle expenses.

The settlement was reached following mediation with Adam Saravay of McCarter & English, the plaintiffs’ lawyers said. The suit was settled promptly because attorneys for both sides have litigated several similar claims against each other, defense lawyers said in their motion for approval of the settlement.

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