Oct. 11, 2004
LOUISVILLE, Ky. — Yum! Brands disclosed in an Oct. 12 regulatory filing that very few potential litigants have signed up for the class action against Pizza Hut.
In the lawsuit, titled Coldiron v. Pizza Hut, Inc., plaintiff Ann Coldiron alleges she and other current and former Pizza Hut restaurant general managers were improperly classified as exempt employees under the U.S. Fair Labor Standards Act. (See Federal judge rules against Pizza Hut in overtime case.)
On May 5, a judge granted conditional certification of a nationwide class of RGMs under the FLSA claim, providing notice to prospective class members and an opportunity to join the class. However, less than 10 percent of the eligible class members have joined the litigation.
According to the filing, once class certification discovery is completed, Pizza Hut intends to challenge its propriety .
Meanwhile, Pizza Hut continues to pump out sound numbers for 2004. As of September, year-to-date same-store sales are up 5 percent, transactions are up 3 percent and the average guest check is up 2 percent.
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