Delivery

New class-action lawsuit targets Papa John's franchisee

Photo: Adobe Stock

July 29, 2026

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A new proposed class-action lawsuit has been filed in federal court against PJIOWA, a large Papa Johns franchise operator in Iowa, alleging it underpaid delivery drivers by failing to adequately reimburse them for using their personal vehicles.

According to an article in The Iowa Dispatch, the lawsuit claims the company reimbursed drivers 35 cents per mile, well below the estimated 77 to 82 cents per mile it costs to own and operate a vehicle. Drivers were also reportedly paid $5 per hour using the federal tipped employee wage, with the suit arguing that unreimbursed vehicle expenses effectively pushed their earnings well below the federal minimum wage.

The complaint also alleges drivers regularly performed non-tipped duties, such as cleaning, answering phones and preparing pizzas, despite being classified as tipped employees.

The case follows similar lawsuits filed against major pizza chains in recent years, including Pizza Hut, Casey's, Domino's and Papa Johns. A 2015 lawsuit against a Papa Johns franchise in Iowa over similar allegations was settled out of court after two years of litigation.