Kansas City, MO., July 2, 2009 - Stueve Siegel Hanson LLP in Kansas City, Mo. and Weinhaus & Potashnick in St. Louis, Mo. recently filed suit against NPC International, Inc., the largest Pizza Hut franchisee operating more than 1,100 stores in 28 states. The plaintiff alleges NPC is in violation of the Fair Labor Standards Act by failure to pay minimum wage to delivery drivers by their refusal to adequately reimburse drivers for automobile costs and other job related expenses.
Pizza companies require their delivery drivers to maintain operable, safe and legally-compliant vehicles. To do so, the drivers must purchase their own gasoline, vehicle parts, fluids, repairs, maintenance services and insurance. Meanwhile, their vehicles depreciate rapidly while driving on the job. Some employees commonly drive more than 100 miles per shift. AAA Auto Club calculates the average 2009 annual cost of operating a vehicle at $8,095 for 15,000 miles. This equates to a per mile cost of $0.54. Costs of operating sport utility vehicles and minivans are even higher.*
The pizza delivery industry maintains a practice of paying its drivers a fixed amount per delivery, regardless of whether a delivery is one block from the restaurant or eight miles away in the next town. Reimbursement rates vary amongst chains from about $0.75 to $1.25 per delivery. However, there appears to be no correlation between the size of the delivery area or average delivery mileage and the amount of delivery reimbursement. This "one-size-fits-all" approach, rather than reimbursing drivers based on their actual mileage, fails to adequately compensate drivers for the actual cost of using their own vehicles to deliver their employers' pizzas.
The lawuit further alleges NPC has failed to reimburse its delivery drivers for cell phone charges incurred for job-related purposes, uniform purchases including pants and shoes, dry cleaning and laundering services, maps, flashlights and batteries. These are all expenses incurred by drivers for the primary benefit of NPC.
Under the federal Fair Labor Standards Act and certain state laws, wages are calculated by subtracting unreimbursed job expenses from hourly wages. The result of NPC's failures to reimburse drivers for automobile costs and other job related expenses is payment of wages below the federal minimum.
The Fair Labor Standards Act provides for recovery of unpaid minimum wages, an equal amount for liquidated damages, attorney's fees and litigation costs. Back wages can be sought over either a two- or three-year period from the date the employee joins the case, depending on whether the violation is deemed willful. Both present employees and former employees of NPC may participate.
Delivery drivers interested in learning more about the lawsuit against NPC may call Jack McInnes of Stueve Siegel Hanson at (816) 714-7100 or call Mark Potashnick of Weinhaus & Potashnick at (314) 997-9150 ext. 2 for more information.
*Source: "Behind the Numbers, 2009 Edition," AAA Association Communication, 2009.
About Stueve Siegel Hanson LLP - Stueve Siegel Hanson LLP represents plaintiffs and defendants nationwhide in complex securities, business, class action, wage and hour, environmental, and product litigation and trials. Stueve Siegel Hanson employs resutls-based contingency fee billing - not hourly billing - to give clients the flexibility to pursue legal action even when that action wouldn't ordinarily be cost effective.
About Weinhaus & Potashnick - Weinhaus & Potashnick is dedicated to fighting for employees' rights, including minimum wage and overtime pay violations by large employers. Our attorneys have 70 years of combined experience. We possess a record of success and a dedicated work ethic. We are easily accessible and responsive to our clients. With our network of employee-friendly attorneys, we can litigate anywhere in the continental United States with no additional cost to you. Large companies and law firms do not intimidate us. Contingent fees are available.
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