Hallrich Pizza Hut Delivery Driver Dispute
Our firm has filed multiple lawsuits and arbitrations against the Hallrich Pizza Hut franchise claiming the company underpays its pizza delivery drivers.
This lawsuit, and the similar lawsuit and arbitrations asserted against the Hallrich Pizza Hut stores before it, alleges that the franchise under-reimburses its delivery drivers for the costs the drivers incur when they use their car for the company’s purposes, i.e., to make deliveries. Specifically, the drivers claim that the company reimburses a per-mile amount (often around $.30 per mile) that is not enough to cover the drivers’ vehicle expenses. This alleged under-reimbursement results can result in a minimum wage or other wage and hour violation.
The Claims
Under-reimbursement of Vehicle Expenses
First, the plaintiff alleges that the company does not properly reimburse for vehicle expenses.
The drivers’ position is that they must be reimbursed at the IRS standard business mileage rate (currently $.585 per mile) when the employer does not collect records of the drivers’ actual expenses and reimburse based on those records.
Even if the company is permitted to reimburse based on an “approximation,” as we expect the defendants will argue, the plaintiff alleges that the Hallrich Pizza Hut stores have failed to “reasonably approximate.”
Violation of the Rules for Claiming a Tip Credit
Second, the plaintiff alleges the company failed to properly claim a “tip credit” against the minimum wage because they failed to actually pay the wage rate they promised to pay, after accounting for under-reimbursement expenses.
In addition to under-reimbursed expenses, the drivers claim they are entitled to the difference between full minimum wage and the “tipped wage rate” the employer claimed to pay, because the company failed to actually pay that tipped wage rate. For example, if a driver was paid $5.00 per hour on the road in a state where minimum wage was $7.25, they would be entitled to $2.25 for each hour worked ($7.25-$5.00=$2.25) if the plaintiff prevails on this claim.
Unjust Enrichment
Third, the plaintiff asserts a claim for “unjust enrichment”. She alleges that the Hallrich Pizza Hut stores unfairly benefit by requiring their minimum wage delivery drivers to cover one of their most costly business expenses without proper reimbursement. The drivers are conferring a benefit on the company, the company is aware of the benefit, and it would be unjust for the company to retain that benefit without commensurate compensation.
Update 07-14-2023
On July 14, 2023 Biller & Kimble secured an individual settlement on behalf of a Hallrich, Inc., pizza delivery driver.
Update 12-29-2022
On December 29, 2022 Biller & Kimble secured an individual settlement on behalf of a Hallrich, Inc., pizza delivery driver.
Update 12-08-2022
On December 8, 2022 Biller & Kimble secured an individual settlement on behalf of a Hallrich, Inc., pizza delivery driver.
Update 12-01-2022
On December 1, 2022 Biller & Kimble secured six individual settlements on behalf of Hallrich, Inc., pizza delivery drivers.
Update 03-11-2022
As we expected, Hallrich made a motion with the court asking to dismiss this case because, according to them, the plaintiff has signed a valid and enforceable arbitration agreement.
On March 10, 2022, Biller & Kimble filed our opposition to the company’s request. In it, we explained how forced arbitration conflicts with the purposes of the minimum wage laws and results in an unfair process for low-wage workers. Read our complete response brief here.
Now, the court will decide whether the case can proceed in court or whether it must go to arbitration.
To learn more about what we see as some of the problems with arbitration in the employment context, check out our blog post on the subject.
Let us know what you think! Should companies be allowed to require employees to waive their right to a jury trial as a condition of employment?
Update 09-17-2021
On September 17, 2021 Biller & Kimble secured an individual settlement on behalf of a Hallrich, Inc., pizza delivery driver.
Update 07-20-2021
On July 20, 2021 Biller & Kimble secured an individual settlement on behalf of a Hallrich, Inc., pizza delivery driver.
Update 12-17-2020
On December 17, 2020 Biller & Kimble secured an individual settlement on behalf of a Hallrich, Inc., pizza delivery driver.
This case is closed
This case is no longer accepting new class members. If you have questions, call (513) 202-0710.