Papa John's Mileage Policy Undercuts Min. Wage, Suit Says

By Alexis Shanes (October 20, 2020, 3:51 PM EDT) -- A Papa John's franchisee was hit with a proposed collective action in a Virginia federal court Monday from a former delivery driver alleging that the company's mileage reimbursement policy leaves drivers making less than the minimum wage.

Michael Derek Compton's suit claims that North Central Virginia Restaurants Inc. maintained a mileage reimbursement policy that slashed his and other drivers' pay, therefore violating the Fair Labor Standards Act's minimum wage protections.

"The net effect of these policies is that defendant willfully fails to pay the federal minimum wage to its delivery drivers," Compton said in the complaint. "Defendant thereby enjoys ill-gained profits...

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