The lawsuit is one in a string filed by restaurant delivery workers over alleged labor law violations.
The New York Times reports that the settlement will cover claims by 61 workers who claimed managers at a Manhattan Domino's told them they wouldn't get paid for overtime hours, forcing them to rely entirely on tips.
State law requires restaurant workers to be paid a minimum wage, even when they are also receiving tips.
But at many New York City restaurants, those provisions are still ignored.
Franchise owner David Melton tells the Times that the company "made some mistakes."