Instead of reimbursing its drivers for the approximate cost of using those vehicles, Domino’s allegedly uses a methodology that results in an “unreasonably low” rate of reimbursement. The lawsuit claims Domino’s and Pizza Brake reimburse drivers at a rate of 20 cents for each mile driven, which is less than half the IRS’ allowable business-mileage reimbursement rate of 54 to 58 cents per mile.
Lawsuit: Pizza-delivery workers’ net wages total 35 cents an hour in Iowa
Alexia Stevens, a former Domino’s driver is suing Pizza Brake Inc., a company that currently owns multiple Domino’s franchises throughout the state. Forester Haynie’s new lawsuit alleges that by unlawfully under-reimbursing delivery drivers for their mileage, Domino’s Pizza is effectively paying workers in their Iowa franchise 35 cents an hour. This is clearly well below the federally mandated minimum wage under the Fair Labor Standards Act (FLSA).