Federal Law Protects Workers’ Wages

Several thousand current and former Pizza Hut delivery drivers are now scheduled to receive compensation after a Wisconsin division of the company agreed to pay a lump sum of $2 million in a wage and hour class action lawsuit.

How the Case Arose

The case was initiated by a former driver against Wisconsin Hospitality Group LLC as well as PH Hospitality Group, which both own 72 Pizza Huts in Wisconsin and Illinois. As a result of the settlement, the worker who initiated the case will receive $25,000 and six other people who joined the suit will receive $1,500. The rest of the lump sum will pay legal fees and then be distributed among workers.

The driver who initiated the case was a delivery driver at a Pizza Hut restaurant located in Appleton, Wisconsin. The driver alleged that he as well as other delivery drivers were compensated at either below minimum wage or close to minimum wage while working as drivers for the company. Drivers at the company were responsible for using their vehicles to deliver pizzas and were required to follow state operation laws as well as be insured. Additionally, drivers for the company were required to pay for gasoline, vehicle maintenance, vehicle repairs, and car insurance.

While delivery drivers for the company received compensation of $7.25 an hour or less as well as $1 for each delivery, this did not compensate for the costs associated with owning and operating their vehicles. As a result, compensation to workers were found by the court to have violated minimum wage laws.

Response to the Court’s Ruling

In response to the statement, the Pizza Hut Hospitality Group issued a statement that it strives to comply with both federal and state wage and hour regulations. The company also commented that Pizza Hut delivery drivers have traditionally earned an average of $15 or more an hour.

Compensation Requirements for Delivery Drivers

Wage laws often prohibit employers of delivery drivers from making deductions from worker’s wages for items that are for the benefit of workers including tools and uniforms.

Employers are, however, allowed to make deductions from wages for property that is damaged, lost, or stolen. Wisconsin law, however, provides protection for workers in this situation. As a result, employers must obtain written consent from workers before making wage deductions. This means that employers can not make these deductions without first obtaining a worker’s approval.

Contact a Wage Lawyer Today

If you are a delivery driver or work in any other field or occupation and have questions about your compensation, it is important to remember that there are options. At Herrmann Law, we have helped numerous workers who have not received adequate compensation successfully pursue wage and hour lawsuits. Contact one of our wage attorneys at Herrmann Law today to schedule an initial case evaluation, during which time we will discuss your various available options. Call our office: 817-479-9229 or fill out our online questionnaire, and someone from our office will contact you.