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HomeNewsPizza chain Zeeks will pay $400,000 in service fees

Pizza chain Zeeks will pay $400,000 in service fees

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News Tech: SEATTLE (AP) — The Seattle-based pizza chain Zeeks will pay delivery drivers about $409,000 after allegedly failing to disclose how much of its delivery charge was paid to drivers.

Service charges are common at Seattle restaurants with some going to employees in lieu of tips and others kept by the employer.

The settlement was announced Wednesday, The Seattle Times reported. In 2019, the company agreed to pay about $285,000 to 257 drivers over the same issue.

The charges are allowed, but restaurants and other companies are required to disclose on menus and receipts what percentage of the charge is paid directly to employees serving customers. If the company doesn’t make clear that it retains a portion, the charge must be paid to employees serving customers.

Zeeks founders Doug McLure and Tom Vial said in a statement they “believe we complied with the statute in good faith” and that drivers did not receive smaller tips “on average.”

“Any technical violations were temporary, immaterial and were caused by a former software vendor, not by Zeeks employees,” they said. Started in 1993, Zeeks has two dozen locations across the state.

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