The delivery drivers of the US restaurant chain Pizza Hut have filed a lawsuit after being underpaid by NPC International, which operates the pizza chain.

The delivery drivers said that NPC International defrauded them on payments for using their own vehicles, Bloomberg reported.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

According to a court filing on Monday, the multi-franchise operator was alleged to have underpaid the drivers by $4 to $12 per hour.

NPC reportedly reimbursed only $0.25 to $0.35 per mile while the mileage reimbursement rate set by the Internal Revenue Service is $0.57 cents a mile.

A total of more than $320m is expected to be paid by NPC International in claims, the report added.

Additionally, the drivers said that number of miles they drove was also undercounted and the top officials were aware of the shortchanging.

However, their claims are temporarily held by the court as the operator’s reorganisation proceeds.

NPC, which previously operated over 1,225 Pizza Hut outlets in 27 states and 385 Wendy’s locations, filed for bankruptcy in July.

At that time, the company said that it was struggling to keep the drivers due to the rise in demand for deliveries amid the Covid-19 pandemic. That meant fewer drivers were available, and because of plummeting demand for its own products, tips were cut down.

“As a result, the company has no other option but to increase wages to retain delivery drivers,” it stated in a document filed in relation with bankruptcy.