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$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.
Book a Free Working Session →How It Happened
Drivers Classified as Independent Contractors
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.
Overtime Pay Uncollected
Because drivers were misclassified, they had collectible overtime when working over 40 hours per week. The franchisees also failed to maintain proper records of hours worked.
Department of Labor Investigates
The U.S. Department of Labor's Wage and Hour Division investigated the franchisees' classification and pay practices, determining that drivers were employees entitled to FLSA protections.
$250,000 Court Order
Federal court required the Rosati's franchisees to pay $125,000 in back wages plus an equal amount in liquidated damages, totaling $250,000 for the 35 affected delivery drivers across 5 locations.
Without Marty
- Drivers treated as 1099 contractors
- Overtime liability accumulates across all locations
- No proper records of hours worked
- DOL investigation reveals misclassification
- $250K court order + back taxes owed
With Marty
- Classification audit flags misaligned driver roles
- Real-time overtime tracking for all workers
- Automated record-keeping for compliance
- Fix classification before DOL investigates
- Documentation proves good-faith compliance
See What's Collectible in Your Classification Data
Our analysis finds the collectible cash sitting in your classification and payroll data.
Book a Free Working Session →If we don't find $250K+ in collectible cash, you don't pay.
Sources: DOL enforcement records, court filings (April 2023).