$250K Court Order. Drivers Misclassified as Contractors.

Rosati's Pizza franchisees across 5 locations in Illinois and Indiana were ordered to pay $250,000 after misclassifying delivery drivers as independent contractors with collectible overtime pay owed.

How It Happened

Rosati's Pizza franchisees classified delivery drivers as independent contractors (1099) rather than employees (W-2). Under FLSA, the "economic reality" test determines classification. Drivers who work set schedules, use company equipment, and are integral to the business are typically employees.