Law firm Phi Finney McDonald and litigation funder Therium Capital Management are filing a class action which alleges that Domino’s underpaid delivery drivers and in-store workers. Estimates put the total claim amount around AUD $100MM.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Law firm Phi Finney McDonald and litigation funder Therium Capital Management are filing a class action which alleges that Domino’s underpaid delivery drivers and in-store workers. Estimates put the total claim amount around AUD $100MM.
As reported in Livewire Markets, the action is being brought on behalf of employees at Domino’s franchises between June 2013 and January 2018. The suit to recapture the difference between the company’s enterprise bargaining agreement (EBA) and the amount workers would have been compensated has no EBA been in effect. Domino’s total savings under its EBA agreement is around $200MM, and it has been roughly estimated that half of its franchisees are covered under the claim – therefore the total claim amount has a rough estimate of AUD $100MM.
So far, only 1,000 workers have signed up for the class action, which means any payout would be far less than the above amount. That said, Phi Finney and Therium are actively courting more claimants.
Domino’s insists its EBA was still valid through January of 2018, and therefore intends to vigorously defend itself in court. The company’s EBA expired in June of 2013, yet no subsequent agreement was put into place. Therefore, the company will argue that its EBA remained in effect (even though it expired).
Domino’s stock took a brief hit on news of the action, but has quickly recovered.
