Norton v. Pizza Luce, Inc.

Background

Elizabeth Norton and Matthew Finley Day asserted claims under the Fair Labor Standards Act, the Minnesota Fair Labor Standards Act, the Minnesota Payment of Wages Act, a Minneapolis wage ordinance, and unjust-enrichment law against the Pizza Luce defendants. They alleged that Pizza Luce required pizza delivery drivers to use their own cars for deliveries without adequately reimbursing their vehicle costs, resulting in minimum-wage violations. They also alleged that Pizza Luce required drivers to participate in a tip pool that included non-tipped employees, including driver routers and phone answerers. The plaintiffs further alleged that the defendants were unjustly enriched by the vehicle-reimbursement policy. The defendants disputed these claims.

Settlement and Class Notice

Before the defendants responded to the plaintiffs’ motion for conditional certification under the Fair Labor Standards Act, the court stayed the case so the parties could attend mediation. The court later certified a class of pizza delivery drivers employed at any Pizza Luce restaurant location between June 9, 2020, and March 31, 2024, and preliminarily approved the settlement.

The Claims Administrator sent settlement notices by first-class mail and email to 420 class members. The court found that notice was successfully delivered to every class member through one or both methods and was the best notice practicable under the circumstances. No class member objected to or opted out of the settlement.

Court’s Ruling

The court granted the plaintiffs’ unopposed motion for final settlement approval. It approved the settlement agreement as fair, reasonable, and adequate under Federal Rule of Civil Procedure 23(e)(2). The court found that the class representatives and class counsel adequately represented the class, the settlement was negotiated at arm’s length, and the proposal treated class members equitably. It also considered the costs, risks, and delay of trial and appeal, the method for distributing relief, and the attorneys’ fees and related terms.

The court approved $10,000 service awards for Norton and Day and the associated general-release agreements. It also approved attorneys’ fees equal to one-third of the settlement fund and reimbursement of litigation costs. The parties were ordered to carry out the settlement according to its terms, and the court retained jurisdiction over disputes arising during implementation. The order directed that judgment be entered accordingly.