Zellagui v. MCD Pizza, Inc.
59 F. Supp. 3d 712
E.D. Pa.2014Background
- Defendants own about ten PA Domino’s stores since 2010 and use delivery drivers to transport orders to customers’ homes.
- Plaintiff was a Domino’s delivery driver who worked December 2010–June 2013 at multiple stores.
- Shifts were nine hours in length, with two additional hours often spent on in-store duties, totaling about 11 hours daily.
- Drivers spent roughly four hours in-store on non-tipped tasks and seven hours delivering for tipped pay; pay was $6.00/hour regardless of task type, plus $1.00 per delivery while on the road.
- Plaintiff alleged under min wage for non-tipped work, under-reimbursement for vehicle expenses, and failure to pay 1.5× overtime; default judgment was entered against Defendants on May 1, 2014.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether non-tipped in-store work violated the MWA | Zellagui alleges $6.00/hr for non-tipped time fell below $7.25/hr | Domino’s contends proper treatment under wage law | Prima facie MWA violation established; damages awarded. |
| Whether vehicle expense reimbursement complied with law | Reimbursements at $6.00/hr plus delivery costs did not meet IRS rate | Employer preferred method supported by records or rate used | IRS mileage rate deemed reasonable; damages computed accordingly. |
| Whether overtime wages were properly paid | Overtime not paid at 1.5× for hours over 40/week | Pay structure and supplements purportedly complied | Prima facie overtime violation shown; damages awarded. |
| How damages and fees should be calculated in a default class action | Damages total and attorney’s fees requested per common fund norms | Default status limits some evaluative factors | Total damages $4,529,753.66; 25% attorney’s fee approved; judgment entered. |
Key Cases Cited
- In re Rite Aid Corp. Sec. Litig., 396 F.3d 294 (3d Cir. 2005) (leading factor-based approach to fees in common fund cases)
- Gunter v. Ridgewood Energy Corp., 223 F.3d 190 (3d Cir. 2000) (Gunter factors for evaluating attorneys’ fees)
- Sullivan v. DB Investments, Inc., 667 F.3d 273 (3d Cir. 2011) (relevance of fee awards in default judgments)
- Durant v. Husband, 28 F.3d 12 (3d Cir. 1994) (precedent cited for notice/show-cause procedures)
- Morgan v. Family Dollar Stores, Inc., 551 F.3d 1233 (11th Cir. 2008) (Field Operations Handbook persuasive authority in wage context)
- Walker v. Washbasket Wash & Dry, 2001 WL 770804 (E.D. Pa. 2001) (statutory three-year limitations for MWA claims)