The Papa John’s employee settlement news people search for usually comes from lawsuits by pizza delivery drivers who said they were not repaid enough for using their own cars. Two cases stand out in the reports we found. In one, store operators in three states agreed to pay 3.25 million dollars, with an approval order dated June 4, 2021. In the other, Papa John’s International and a class of more than 50,000 drivers asked a federal judge in July 2023 to approve a 20 million dollar deal. This article explains what the reports say, who was covered, what the claims were, what is still unclear, and how to protect yourself from fake settlement websites. Settlements are agreements to end a dispute, and they are not findings that anyone broke the law.
The Short Version
Several wage and hour cases have involved Papa John’s drivers over the years. The common theme is vehicle expense reimbursement: drivers use their own cars to deliver pizza, and they argued that the money they received for gas, wear, and repairs was too low. When reimbursement is too low, the driver’s real pay can fall below the minimum wage.
We found news reports on two large settlements, plus search results that mention smaller ones. We could not confirm the final status of the larger case, and we could not confirm whether any claim period is open now. If you think you are covered, check the official court notice or settlement administrator, not a random website.
The 3.25 Million Dollar Settlement
Restaurant Dive reported on June 11, 2021, that Papa John’s store operators in several states agreed to pay 3.25 million dollars to settle state and federal wage and hour claims from a class of delivery drivers. The case is Hatmaker v. Papa John’s Ohio, filed in the U.S. District Court for the Southern District of Ohio. The article says three drivers sued in 2017, arguing that their employers did not adequately reimburse them for vehicle expenses. The settlement covers thousands of drivers across about 70 stores in three states. You can read the report in Restaurant Dive’s coverage of the settlement.
The report adds that the court rejected a “reasonable approximation” approach used by the defendants, and held that drivers must be reimbursed either for actual expenses or at the IRS business mileage rate. Payment is made in two parts, with the second due on or before April 1, 2022, and each driver’s share is prorated by a formula based on weeks worked, miles driven, or both.
Who Paid in That Case?
The defendants in the Ohio case were described as the store operators or owners, not Papa John’s corporate. The article does not say whether the parent company was a party, paid any of the amount, or has any liability. That detail matters, because many Papa John’s restaurants are run by franchisees, which are separate businesses that use the brand. The sources we read do not explain the ownership of each store, so we do not state it.
The 20 Million Dollar Deal
Bloomberg Law reported on July 14, 2023, that Papa John’s International and delivery drivers asked a federal judge to approve a 20 million dollar settlement. The article called it easily the largest deal in a pizza delivery reimbursement suit. It said the settlement class includes more than 50,000 pizza delivery drivers, and that drivers had said the company’s reimbursement policies pushed their pay below state and federal minimum wages. The case is Durling v. Papa John’s International, filed in the U.S. District Court for the Southern District of New York. See Bloomberg Law’s report on the 20 million dollar deal.
According to the article, workers’ lawyers sought nearly 6.7 million dollars in attorneys’ fees, and the final approval motion was filed on Thursday, July 13, 2023. The report says the recovery was higher than the value of the mediator’s proposal. At the time of the article, the court had not ruled.
Is the 20 Million Dollar Deal Final?
We could not confirm it. The Bloomberg Law article was about a request for final approval, and it reported no ruling. We also looked for company disclosures. A Papa John’s securities filing that we opened describes the Durling case as a conditionally certified collective action filed in May 2016 in the Southern District of New York, but the excerpt we saw stopped before any settlement details. We did not find a later court order or press release in our searches.
So we cannot say whether the judge approved the deal, when payments were made, or how much each driver received. Anyone who needs those facts should read the court docket or the official notice.
What the Drivers Claimed
In general, delivery drivers in these cases argued that they were paid at or near the minimum wage, and that the reimbursement for vehicle costs was too low. If a driver’s car costs, such as gas and wear, are higher than the reimbursement, the difference can reduce the driver’s real wage. Under wage and hour law, an employer must pay at least the minimum wage, and reductions for work expenses can count against that.
The reports describe the claims as allegations. A settlement usually ends the case without a court decision on who was right. That means a settlement is not proof of wrongdoing, and it also does not mean the claims were false.
Smaller Settlements in the Search Results
Search results also listed other Papa John’s wage settlements, including a 250,000 dollar settlement by a franchisee and drivers that was preliminarily approved, and a 140,000 dollar settlement with an ex-worker, plus a franchise class settlement for an undisclosed amount. We could not open those pages, so we do not give details such as dates, locations, or claims. They suggest that wage disputes have come up in different places and involve different owners, but we cannot say more.
What “Class Action” and “Collective Action” Mean
A class action lets a few people sue on behalf of a larger group with similar claims. A collective action is a similar tool under federal wage law, where people usually must opt in to join. The terms matter because they affect how you receive notice and whether you must take action to be paid.
In general, if you are a member of a settlement class, you may receive a notice by mail or email. It explains how much you may get, how to claim it, how to opt out, and the deadlines. If you do nothing, you may still be bound by the settlement in some cases, and you may lose the right to sue separately. Read the notice carefully.
How to Check If You Are Covered
Start with the case name and the court. The notices usually list the class definition, such as drivers who worked at certain stores during a certain period. Then check the dates. Compare them with your own work history, pay stubs, or tax forms. If you are not sure, contact the settlement administrator named in the official notice or the class lawyers listed there.
Keep your contact details up to date. If you moved, the notice may not have reached you. Be careful about waiting, because claim deadlines can pass.
Beware of Fake Settlement Websites
When a big settlement makes the news, scammers create fake claim sites. They may ask for your Social Security number, bank login, or a fee to “release” your payment. A real settlement does not charge you a fee to receive your share.
Use only the website and phone number listed in the official court notice, or in a notice you received by mail. Do not click links in unexpected texts or emails. For simple habits that help, read this guide on staying private online. If you gave information to a suspicious site, change your passwords and consider placing a fraud alert with the credit bureaus.
Will a Settlement Payment Be Taxed?
Payments for unpaid wages are often treated as wages for tax purposes, and other parts of a settlement may be treated differently. The sources we read do not discuss tax treatment, and the answer depends on the settlement terms and your situation. Check the notice, keep your records, and ask a tax professional if you are unsure.
Why These Cases Matter Beyond Pizza
Vehicle reimbursement is a question for many jobs where workers use their own cars, such as delivery, home care, and sales. The Ohio court’s holding, as reported, that employers must reimburse actual expenses or use the IRS business mileage rate is a useful example of how courts view the issue. It was one court in one case, and other courts may decide differently.
For companies, the cases show the cost of unclear reimbursement rules. For workers, they show why it helps to track mileage and expenses. For observers of the wider market, the cases are examples of legal risk in franchise and delivery businesses, though we do not predict outcomes or give investment advice.
What Workers Can Do Today
If you drive your own car for work, keep a simple log of miles, dates, and expenses. Save pay stubs and any written reimbursement policy. Compare your reimbursement with the IRS business mileage rate and with your real costs. If your pay seems too low, you can contact your state labor department or a worker rights group. Time limits apply to wage claims, so do not wait too long.
This is general information, not legal advice. A lawyer who handles wage cases can explain your options.
What We Could Not Verify
We could not confirm the final approval of the 20 million dollar deal, the amount per driver, or whether a claim period is open. We did not read the court orders or the settlement agreements. We could not open several pages from search results, including those about smaller settlements. The Restaurant Dive article does not say what role Papa John’s corporate had in the Ohio case. We do not know the current status of any Papa John’s wage case beyond what the articles state.
Conclusion
The Papa John’s employee settlement stories center on delivery drivers who said they were not reimbursed enough for vehicle costs. A June 2021 report described a 3.25 million dollar settlement paid by store operators in three states, and a July 2023 report described a 20 million dollar deal, covering more than 50,000 drivers, that was waiting for final approval. Settlements end disputes without deciding who was right, and the final status of the larger deal is not confirmed in the sources we read.
If you think you might be covered, use official court notices, keep your own records, and avoid fake claim sites. Accurate information is the best protection.
Frequently Asked Questions
1. What was the Papa John’s employee settlement about?
Delivery drivers said they were not adequately reimbursed for using their own vehicles, which pushed their pay below minimum wage.
2. How much were the settlements?
Reports cite 3.25 million dollars from store operators in three states and a 20 million dollar deal with Papa John’s International that was awaiting final approval.
3. Does a settlement mean Papa John’s broke the law?
No. A settlement ends a dispute and is usually not a finding of wrongdoing.
4. How do I know if I am covered?
Check the official court notice or settlement administrator for the class definition, dates, and deadlines.
5. How do I avoid settlement scams?
Use only official notices, never pay a fee to receive your share, and do not click links in unexpected messages.
