Colorado Politics

Franchise of Domino’s Pizza settles case over alleged labor law violations

A federal judge in Denver on Monday approved a $545,000 settlement between a Denver franchise of Domino’s Pizza and workers who claimed the company violated federal and state labor laws.

The workers said laws were broken regarding rest and meal breaks for hourly employees and improper reimbursement to delivery drivers for mileage.

The settlement in Murray v. Tips Inc. includes two classes of plaintiffs.

The “FLSA Settlement Class Members,” referring to the Fair Labor Standards Act, include Colorado delivery drivers who worked for Tips Inc. between April 21, 2015, and July 1, 2019, and opted in as members of the class. The “Meal and Rest Break Settlement Class” includes includes Colorado employees of Tips, Inc. who as of July 1, 2019 worked 32 or more hours per week for at least half the weeks they were employed by Tips, Inc. and did not opt out of the settlement.

According to a motion filed in March by the parties for approval of the settlement, Tips Inc. agreed to pay $545,000, including attorney fees and costs, which the parties agreed wouldn’t amount to more than one-third plus $15,000 of the total settlement.

In Monday’s order, U.S. District Judge Raymond Moore approved $179,850 in attorney fees and $14,424.65 in costs. He also approved a $5,000 participation award for plaintiff Sheretta Murray, who acted on behalf of the case’s class members.

Attorneys for the plaintiffs and Tips Inc. were not immediately available for comment.

According to the motion, the case was originally filed in April 2018 by Jeremy Fletcher on behalf of class members. However, he eventually withdrew from the case and Murray volunteered to take his place as the representative plaintiff.

The motion states Tips Inc. has not admitted wrongdoing and does not believe class status is appropriate for the case except for purposes of the settlement, while Murray believes she would win on the claims from both classes. But both parties recognized the uncertainty of an outcome at trial and the time and expenses required by continuing litigation.

The parties also recognized several questions of law and fact remain in dispute, creating risk related to the uncertainty of possible damages. Lingering disputes include whether the case could go to trial as a class action and applicability of possible penalties.

According to the settlement, members of the FLSA settlement class who claimed Tips Inc. improperly reimbursed them for mileage opted into the plaintiff class and have released any claims related to mileage reimbursement or missed rest and meal breaks, either under the FLSA or Colorado law. Members of the meal and rest break settlement class, who were not required to opt in, have only released claims under Colorado’s law related to missed breaks but not claims under the FLSA.

The motion for approval of the settlement states payment to each member depends on factors. These include the number of miles driven, reimbursements they received from Tips, Inc., the number of weeks worked by members of the meal and rest break class, and a minimum payment for those who are non-participating members of the meal and rest break class unless they opt out of the settlement.

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