News, Blog & Cases

Thursday, November 19, 2009

Domino's Drivers File Suit Over TIps

Delivery drivers for Domino's Pizza have filed suit alleging that Domino's failed to pay them minimum wages. According to the complaint, Domino's paid drivers on the "tip credit" system. In other words, Domino's took a credit against the full hourly minimum wage that ordinarily would be paid to drivers on the theory that driver tips would make up the difference. This is legal under federal law and the laws of many states as long as certain rules are followed. In this case, the drivers contend that Domino's took the credit even when the drivers were performing work for which they did not receive any tips (e.g., car maintenance). An analogous example would be a restaurant server paid on the tip credit system for hours spent cleaning the restaurant.