Domino's Delivery Driver Wins Judgment and Fees

Ever wonder where those "delivery fees" go when you order food online? You might assume it goes to the person who brings you your food. But that’s not always the case.

Our client worked as a delivery driver for a Domino’s franchise. The franchise charged customers a $2.50 “delivery fee” but kept that money for itself rather than passing it on to the drivers. We filed a lawsuit, arguing that this practice violated the Massachusetts Tips Law.

Under Massachusetts law, employers are prohibited from retaining or misusing any "service charges" collected from customers. A “service charge” is defined as:

“[A] fee charged by an employer to a patron in lieu of a tip to any wait staff employee, service employee, or service bartender, including any fee designated as a service charge, tip, gratuity, or a fee that a patron or other consumer would reasonably expect to be given to a wait staff employee, service employee, or service bartender in lieu of, or in addition to, a tip.”

We argued that Domino’s “delivery fee” qualified as a service charge because customers would reasonably expect it to go to the delivery driver — who is clearly a service employee.

Rather than contest the case and risk broader liability, the Domino’s franchise chose to make our client an offer of judgment. It agreed to pay our client the full amount of his damages — $19,500 — plus legal fees and costs.

The franchise later asked the court to reduce the amount of fees and costs we requested. The court declined and awarded us the full amount — approximately $43,000.

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