The basics of the lawsuit
In 2018, Papa John’s drivers in Louisiana filed a class-action lawsuit against the pizza chain. The drivers claimed that they were not paid for all the hours they worked and that their tips were often taken by their managers. Papa John’s denies these claims, but the case is still ongoing.
Who is suing whom
Papa John’s lawsuit: 5 things to know about the fight between the pizza chain and its ex-CEO
Papa John’s is being sued by its founder and former CEO, John Schnatter.
Here’s what you need to know about the lawsuit.
- Why is Papa John’s being sued by its founder?
John Schnatter, Papa John’s founder and former CEO, is suing the pizza chain for allegedly breach of contract and defamation.
- What is Schnatter alleging in his lawsuit?
According to the lawsuit, Papa John’s breached its contract with Schnatter when it made him leave as chairman in July 2018. The suit also alleges that the company defamation Schnatter by claiming he used a racial slur on a conference call in May 2018.
- How has Papa John’s responded to the lawsuit?
In a statement, Papa John’s said it would “vigorously defend itself” against Schnatter’s “baseless claims.” The company also said it would not comment further on pending litigation.
- What has been the fallout from the controversy?
Schnatter resigned as Papa John’s chairman in July 2018 after it was revealed he used a racial slur on a conference call in May 2018. Since then, Schnatter has sold his stake in the company and has been replaced as CEO by Steve Richie. In addition, Major League Baseball ended its partnership with Papa John’s following the controversies surrounding Schnatter.
What is the lawsuit about
The lawsuit alleges that Papa John’s misclassified its drivers as independent contractors, rather than employees, in order to save on labor costs. The drivers say they were misclassified because they were required to wear Papa John’s uniforms, drive Papa John’s cars, and follow Papa John’s delivery procedures.
The drivers are seeking reimbursement for gas and car expenses, as well as tips they say they were entitled to but did not receive because of the misclassification.
The key players in the lawsuit
Papa John’s pizza chain is being sued by 100 of its drivers in the US who say they were not given the proper compensation for the work they’ve done. The class-action lawsuit was filed in New Jersey on Tuesday and seeks unspecified damages. The suit claims that Papa John’s drivers were not reimbursed for the cost of gas, maintenance, or other expenses incurred while delivering pizzas.
The drivers who are suing Papa John’s are former and current delivery drivers who say they were not properly compensated for their work. They allege that they were not paid for all the hours they worked, were not reimbursed for their expenses, and were not given proper breaks. The drivers are seeking class-action status, which would allow other drivers who have similar complaints to join the lawsuit.
Papa John’s is an American pizza company. The Papa John’s franchise was founded in 1984 in Jeffersonville, Indiana, by “John” Schnatter. The pizzas are made with dough that is fresh, never frozen; vegetables that are fresh, never canned; and meats that are lean and juicy, not greasy.
Papa John’s drivers say the company’s promise of pizza “delivered hot and fast” rings hollow because of how it treats its workers. They cite widespread instances of harassment and discrimination, as well as delivery areas so large that it’s impossible to make all the drops within the tight time frames set by management.
The lawyers representing the plaintiffs in the Papa John’s lawsuit are some of the most experienced and well-respected members of the legal community. They have a long history of success in complex litigation, and they are committed to getting the best possible result for their clients.
Some of the lawyers who are representing the plaintiffs include:
- James Trautman: Mr. Trautman is a partner at the law firm of Becker & Poliakoff, P.A. He has been practicing law for more than 35 years, and he has represented clients in a wide variety of complex litigation matters. Mr. Trautman is a graduate of Harvard Law School, and he has been recognized as one of the top 100 lawyers in Florida by Super Lawyers magazine.
- Mark Jaffe: Mr. Jaffe is a partner at the law firm of Hausfeld LLP. He has been practicing law for more than 25 years, and he has significant experience litigating complex class action lawsuits. Mr. Jaffe is a graduate of Georgetown University Law Center, and he has been recognized as one of the top class action lawyers in the country by ClassActionBlawg.com.
- Michael Hausfeld: Mr. Hausfeld is the Chairman of Hausfeld LLP. He has been practicing law for more than 40 years, and he is widely regarded as one of the preeminent attorneys in the field of class action litigation. Mr. Hausfeld is a graduate of Yale Law School, and he has been inducted into the American College of Trial Lawyers and the American Academy of Arts and Sciences.
The potential outcomes of the lawsuit
Papa John’s is facing a lawsuit from their drivers in 2018. The drivers are accusing Papa John’s of not reimbursing them for their mileage. This could potentially cost Papa John’s a lot of money if the drivers win the lawsuit.
The drivers win
If the drivers win the lawsuit, they will be classified as employees and be entitled to employee benefits. This would include things like overtime pay, sick days, and vacation days. The drivers would also be entitled to reimbursement for work-related expenses, like gas and car maintenance.
The drivers lose
A class-action lawsuit was filed in early 2018 against Papa John’s on behalf of drivers who say they were not paid for all the hours they worked. The drivers say they were not paid for time spent waiting for pizza deliveries and that their pay did not reflect extra duties, such as cleaning the inside of their cars. If the drivers lose the case, they will not receive any money from Papa John’s.
The impact of the lawsuit
In early 2018, Papa John’s was hit with a lawsuit that accused the company of mistreating its drivers. The lawsuit claimed that the drivers were not given proper rest breaks, and that they were not reimbursed for expenses. This lawsuit had a major impact on the company.
On the drivers
The Papa John’s drivers’ lawsuit was first filed in May 2018. The plaintiffs, a group of delivery drivers in California, allege that they were misclassified as independent contractors and not given proper wages or reimbursements for their expenses. If the drivers win the case, they could be owed back pay and other damages. The case is still in the early stages, and a trial has not yet been set.
On the company
Papa John’s International, Inc. is an American pizza restaurant franchise company. A Papa John’s restaurant is operated and owned by either an independent franchisee, an affiliate, or the corporation itself. The corporation is headquartered in Jeffersonville, Indiana, near Louisville, Kentucky.
On July 11, 2018, Papa John’s announced that it had agreed to a deal to be acquired by Starboard Value LP for $48 per share. If completed, this would have represented a total equity value of approximately $2.16 billion and an enterprise value of approximately $3.3 billion for the business. However, on August 27, 2018, Papa John’s announced that it had ended talks to be acquired byStarboard Value LP due to disagreements over price.
On the restaurant industry
The restaurant industry was dealt a potentially major blow last week when a federal jury in Kentucky ruled that Papa John’s founder and former CEO John Schnatter must pay $3 million for allegedly using racist language on a company call in May 2018.
The suit, which was brought by Schnatter’s former advertising agency Laundry Service, claimed that Schnatter had used the n-word during the call, which was meant to be a training exercise on how to avoid public relations disasters. Schnatter has denied using the word and said it was taken out of context, but the jury sided with Laundry Service, ordering him to pay damages for breaching his contract with the agency.
The fallout from the suit has been swift and far-reaching. Schnatter resigned as Papa John’s chairman in July 2018 after news of the call broke, and he was subsequently ousted from his role as CEO. He has since sold his stake in the company and has been trying to buy it back, but so far has been unsuccessful.
In the wake of the lawsuit, several other companies have cut ties with Papa John’s, including Major League Baseball, which ended its partnership with the pizza chain earlier this month. And on Friday, Yum Brands Inc., which owns Pizza Hut and KFC, said it would not renew its contract with Papa John’s to sell its products at stadiums and arenas.
The loss of these partnerships is a big blow to Papa John’s, which is already struggling amid intense competition in the pizza delivery market. The company’s sales have declined for three straight years, and its stock price has plunged more than 60% since Schnatter first made headlines for his comments about NFL players kneeling during the national anthem in November 2017.
Papa John’s is far from the only restaurant company facing headwinds these days. The industry as a whole is under pressure as consumers shift their spending to other categories like experiences and away from traditional dining out options. Several major chains have filed for bankruptcy in recent years, including Toys “R” Us and Sears Holdings Corp., while others have closed hundreds of stores or been sold off by their parent companies.
But the restaurant industry still employs millions of people and is a major contributor to the U.S. economy, so any further contraction could have major ripple effects throughout businesses large and small