Class action suit against Pizza Hut grows

March 29, 2011

More than 20,000 delivery drivers for Pizza Hut's largest franchisee, NPC International Inc., are now considered eligible plaintiffs in a national class action suit stemming from mileage reimbursement.

According to the Kansas City Star, a U.S. District Judge granted conditional certification for the drivers based on minimum wage violations. The violations center on a pay rate significantly below the IRS mileage reimbursement rate for drivers who use their personal vehicles. The discrepancy causes the employees' overall pay to fall below minimum wage rates.

The mileage reimbursement issue affects about 1,135 Pizza Hut stores operated by NPC International in 28 states. Employees eligible for plaintiff status in the case have 90 days to be included in the lawsuit.

From the story:

Vonnie Walbert, NPC's vice president of human resources, responded to the lawsuit Tuesday: "We believe this litigation is lawyer-driven and will continue to vigorously defend our position. We value our delivery drivers and believe we reimburse them fairly. We look forward to having the opportunity to prove this once the court evaluates the merits of this case."

Topics: Delivery , Franchising & Growth , Human Resources , Operations Management , Pizza Hut , Staffing & Training

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