Pagliacci Pizza settles class-action lawsuit for $830K

The owners of Seattle's Pagliacci Pizza have settled a class-action lawsuit filed against the company by two delivery drivers.

The lawsuit, filed last spring in King County Superior Court, alleged that Pagliacci had failed to properly reimburse delivery drivers for mileage expenses. Pagliacci will pay $830,000 in the settlement.

“We have always aimed to fairly compensate our drivers for the use of their vehicles,” co-owner Matt Galvin said in a news release this week. “We’re proud of our team of drivers and believe they provide the best food delivery service in Seattle. Pagliacci’s drivers are all company employees, not independent contractors, like most other delivery services.”

The lawsuit alleged the company reimbursed delivery drivers at a flat rate as opposed to paying a per-mile rate set by the IRS. The company's flat rates, according to the suit, often failed to cover the total cost of a delivery and at times caused workers to earn sub-minimum wages.

https://www.bizjournals.com/seattle/news/2024/10/08/pagliacci-pizza-lawsuit-settlement.html