MSD filed a lawsuit seeking to represent delivery drivers who have worked at Jimmy John’s franchises over the past several years.
The plaintiff-delivery driver claims that the “Hohla & Wyss” Jimmy John’s franchisees denied delivery drivers proper wages in three distinct ways.
Under-reimbursed automobile expenses and other “kickbacks”
First, the plaintiff alleges that Jimmy John’s stores fails to pay sufficient reimbursement payments for the deliveries that their drivers complete. Because the drivers are paid a tipped minimum wage (i.e. less than full minimum wage), any under-reimbursed expenses result in a minimum wage violation and an “illegal” kickback to the company. The plaintiff seeks reimbursement of expenses at the IRS mileage reimbursement rate, plus additional damages, on behalf of the drivers.
Tipped minimum wage for non-tipped workers
Second, the plaintiff alleges that Jimmy John’s stores pays their delivery drivers tipped minimum wage for all of their work hours, including the hours they work inside the store. Since the delivery drivers do not receive tips during this time, the plaintiff claims that they are entitled to at least full minimum wage, plus additional damages, for these hours.
Failure to pay overtime
Third, the plaintiff alleges that Jimmy John’s stores pay delivery drivers the same wage for all hours worked, including hours worked in excess of 40 hours per week. Often, the Jimmy John’s stores accomplished this by paying their drivers on separate paychecks for the same pay period. Since the delivery drivers do not receive their hourly rate at time-and-one-half for hours worked over 40 hours per week, plaintiff seek damages for the amount of overtime worked (at one-and-a-half times the normal hourly rate), plus additional damages, on behalf of drivers.
You can read the Class Action Complaint here.
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