For the second time in three years, Seattle-area chain Pagliacci Pizza is settling a class-action lawsuit with delivery drivers for allegedly violating labor laws.
The more recent suit was filed in King County Superior Court in May, reports the Seattle Times, and was settled for $830,000. Drivers alleged in the lawsuit that Pagliacci Pizza paid them a flat rate per delivery rather than by the mile. The disparity, the suit went on to allege, meant that some delivery drivers were working for less than the legal minimum wage—making this a potential case of wage theft.
In 2021, Pagliacci settled a similar suit for $3.75 million that revolved around allegations of improperly managed mileage reimbursement, wages, tips and shift breaks. Despite the two settlements, Pagliacci co-owner Matt Galvin said in a statement that the 26-location chain has always strived to fairly compensate drivers.
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“We’re proud of our team of drivers and believe they provide the best food delivery service in Seattle,” Galvin said in the statement. “Pagliacci’s drivers are all company employees, not independent contractors, like most other delivery services.”
Galvin also said, via statement, the latest suit was “filed shortly after” the pizza brand had brought its delivery payments into accordance with IRS guidelines. “Eligible current and former drivers will receive reimbursement reflecting the difference between Pagliacci’s previous rates and the IRS mileage guidelines at the time of each delivery,” per the statement.
Pagliacci Pizza may soon have fewer delivery drivers in its fleet, thanks to a pivot toward drone delivery the brand will look to make in the coming months. Last year, the chain made news for a partnership it entered with Zipline, a company that might soon be helping several restaurant chains deliver food via drone. It’s not just cost effective, Galvin said at the time, but a more sustainable way to deliver pizza.
“Over a decade ago, we committed to sustainability by taking bold steps to reduce our carbon footprint, including purchasing green power, buying locally, and developing robust composting programs,” Galvin said in 2023. “As we work toward carbon neutrality, Zipline’s drones will enable us to scale our deliveries sustainably with up to 97% fewer emissions than cars.”
Each Zipline drone is estimated to be able to carry two 13″ pizzas, as well as side dishes. Using the drones, Pagliacci hopes to expand its delivery zones, ease pressure on its drivers and reach more customers, all while reducing its carbon footprint.
Still, even the most rosy estimates regarding the drone program suggest Pagliacci Pizza will be relying on a fleet of drivers for the bulk of its deliveries in the coming years. And those drivers will have to be properly compensated in order to avoid future allegations.
