Minimum Wage

Pizza Hut's Second-Largest Franchisee Sued in Pay Dispute

Pizza Hut's second-largest franchisee is in hot water with a former delivery worker.

Jamar Hackett of Marlboro, Md., filed a class action lawsuit against his ex-employer, alleging that the franchisee failed to properly compensate employees who used their own cars to deliver pizza.

The suit claims that the defendants – ADF Companies and a number of other co-franchisees – underestimate per mile reimbursement and fail to cover any repairs or maintenance costs associated with delivery work. As a result, Hackett and other Pizza Hut employees were paid less than minimum wage when car-related costs are taken into account.

Related: 8 Trends That Food Franchises Are Watching Right Now

The defendants together own 291 Pizza Hut franchises across a dozen states. They are all united under the ADF brand, making the company the second largest Pizza Hut franchisee in the U.S. and the eighth largest in the world.

ADF Companies did not immediately return Entrepreneur's request for comment. Pizza Hut said it was unable to comment on pending litigation.

While the lawsuit does not accuse Pizza Hut corporate or Yum Brands of wrongdoing, this issue doesn't seem to be isolated to ADF. The lawyers representing Hackett and other drivers have brought a number of similar cases against pizza chain franchisees, including Papa John's, Domino's and other Pizza Hut franchisees. If plaintiffs succeed, it may be time for the pizza delivery industry to buckle up and start considering a new way to pay drivers.  

Related: Chick-fil-A Beats Out Chipotle in Customer Satisfaction

Edition: October 2016

Get the Magazine

Limited-Time Offer: 1 Year Print + Digital Edition and 2 Gifts only $9.99
Subscribe Now