Pizza Nova has been hit with a $150 million class action lawsuit by a group of delivery drivers who accuse the Canadian pizza chain of misclassifying them as independent contractors and failing to pay them minimum wage.
The Pizza Nova class action lawsuit was filed last month on behalf of delivery drivers at 140 restaurants in Ontario. The plaintiffs allege the delivery drivers were denied “appropriate compensation” and other protections because they were misclassified as independent contractors instead of employees.
“I’ve spent years of my life working as a pizza delivery driver and experiencing the problems of employment misclassification in the industry first-hand,” plaintiff Juan Jose Lira Cervantes said.
Juan says he worked as a delivery driver for four restaurants in the greater Toronto area for more than six years. During this time, he was classified as an independent contractor and therefore was not protected by provincial employment laws.
Under Ontario law, independent contractors are defined as workers who are basically self-employed and can make their own schedules and determine the way their work should be done. Independent contractors in Ontario also reportedly cannot be disciplined by a superior.
If a worker meets the legal definition of an employee, it is against the law for an Ontario business to classify the worker as an independent contractor.
According to the employee misclassification class action lawsuit, Pizza Nova is a “common employer” and therefore is on the hook for damages because it set standards for its franchisees to follow, such as delivery drivers’ contracts, delivery assignments and minimum staffing levels.
Juan worked a schedule that was created by Pizza Nova, wore a Pizza Nova uniform, and was assigned orders by the stores. When he was not delivering food, he performed “in-store duties as required,” the Pizza Nova class action lawsuit says.
The level of “integration, supervision and control imposed” by Pizza Nova on its delivery drivers “establishes an employment relationship,” Juan alleges.
About 65 percent of Pizza Nova’s business is food delivery, according to the employee misclassification class action lawsuit.
Juan says he was paid between $6 and $9 an hour, and he paid for expenses like gas and car maintenance out of his own pocket. He reportedly did not receive overtime, vacation or public holiday pay.
Pizza Nova did not contribute to his Canadian Pension Plan or Employment Insurance. Nor did Pizza Nova pay workers’ compensation premiums on his behalf. Juan says he is not alone and that other pizza delivery drivers have also been misclassified and underpaid by Pizza Nova.
Delivery drivers are “in a position of vulnerability in relationship to the defendants,” the Pizza Nova class action lawsuit says.
“The defendants owed a duty of care … to ensure they were accurately classified as employees and properly compensated for all hours worked.”
Juan says he decided to file the Pizza Nova class action lawsuit in order to “fight against employment misclassification and to improve working conditions for the pizza delivery driver in an industry that treats them poorly.”
The lack of employment protections that independent contractors face is especially problematic during the COVID-19 pandemic, which is causing many workers to be laid off as businesses cut back their operations or shutter their stores.
At the same time, food delivery drivers are being tasked with even greater responsibilities. With strict measures in place to limit social interactions, restaurants have had to close their dining areas to customers and serve food via takeout or delivery.
Attorney Ella Bedard of Goldblatt Partners says the pandemic “highlights not only how critical these workers are to Pizza Nova’s operations, but also how important it is that they receive the same basic workplace protections as other employees.”
This Pizza Nova class action lawsuit is not the first time Juan has fought against alleged employment misclassification.
In 2018, the provincial Ministry of Labour reportedly determined that a Domino’s Pizza franchise had misclassified Juan as an independent contractor while he worked for the company. The franchise was ordered to pay him $25,800, although Juan only received $6,300 because the franchise voluntarily dissolved.
Even though the Domino’s Pizza franchise dissolved, attorney Josh Mandryk told the Star that “the same pizza business continues to operate at the very same location.”
“This experience highlights deep flaws in Ontario’s employment standards regime and its failure to protect working people,” Mandryk said.
Pizza Nova has denied the allegations.
What do you think about this lawsuit? Should pizza delivery drivers be classified as contractors or employees? Tell us your opinion in the comment section below!
Juan is represented by Goldblatt Partners.
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3 thoughts onPizza Nova Class Action Alleges Minimum Wage Violations
These people who sue the company are scammers . He has done it before to domino’s. Why would you work for compay like this if u knew you would not get enough wage ! I give you the answer. Under the table money you earned. So you need to be charged for lying to government for working under the table.
I am a former Delivery Driver for a pizza Nova franchise in Midland Ont. I had a verbal contract pertaining to the hours that I was available to work. After about six weeks the manager (she was also the franchisee’s girlfriend) decided that she could change my hours and days, which broke our verbal contract, after a heated discussion I quit because I could not work the new hours she was offering. As stated in your pending lawsuit I was considered as an independent contractor and was paid below the minimum wage, but I was given other jobs to do when not delivering food, such as washing utensils etc, counting pizza dough balls and taking them out of the freezer to rise/thaw. Also I was involved in preparing food eg; chicken wings salads etc, at the end of night I was required to sweep and wash the floors, these “jobs” are considered mandatory they are not voluntary. I informed the labour board and they found in my favour but the franchisee never fully compensated me, if you will please add my name to the list of complaintents in this lawsuit.
Oh get a life ! The only reason you people want to deliver pizza is to earn some cash and not report it to the government. . You make more money this way and you know it . So stop the bs! You have a choice to work somewhere else and pay tax on your income. Mayne you should claim all the wages u got including all the tips u earned. Scammers