SEATTLE — Seattle's Pagliacci Pizza has settled a class action lawsuit that alleged the company didn't properly reimburse delivery drivers for expenses.
Two delivery drivers filed the lawsuit in King County Superior Court earlier this year. The lawsuit alleged that Pagliacci underpaid drivers for most trips because it used a flat reimbursement for delivery-related auto expenses instead of the standard rate per mile set by the Internal Revenue Service.
The lawsuit said the gap between what Pagliacci paid drivers and the actual costs incurred by the deliveries was so large that the drivers received less than the minimum wage for hours worked.
Pagliacci settled the lawsuit last week for $830,000. According to the settlement, $634,000 was awarded to the nearly 600 class members with legal fees not to exceed 25% of the full settled amount. Class members include anyone who was a delivery driver between May 15, 2021 and April 21, 2024.
Delivery drivers for Pagliacci filed a similar lawsuit in 2017, which the company settled in 2021. The recent lawsuit said Pagliacci did not change the way it reimburses delivery drivers after the 2021 settlement.
