Plaza Azteca Agrees to Pay $11.4 Million in Back Wages and Damages to Over 1,000 Employees

Plaza Azteca, a popular restaurant chain with over 40 locations, has reached an agreement to pay $11.4 million in back wages and liquidated damages to more than 1,000 employees. The Department of Labor (DOL) filed a complaint against owner Ruben Leon and the restaurants after discovering violations of overtime and minimum wage practices under the Fair Labor Standards Act (FLSA). This consent judgment marks the DOL’s largest recovery in back wages from a restaurant this year, highlighting the severity of the violations.

Violations Discovered

The DOL’s Wage and Hour Division conducted an investigation that revealed several violations committed by Plaza Azteca restaurants. Among them, it was found that back-of-house employees were being paid predetermined amounts, leading to some individuals working up to 40 hours in a workweek without receiving the mandated minimum wage. Furthermore, certain employees were not compensated with time-and-a-half wages for working more than 40 hours in a week. Additionally, the restaurants failed to maintain accurate records of staff work hours and wages.

Penalties and Consequences

As a result of these violations, Plaza Azteca has been ordered to pay $625,000 in penalties. The substantial penalty amount is attributed to the repeat and willful nature of the violations. The lawsuit involved Plaza Azteca locations in Connecticut, Maryland, Massachusetts, New Jersey, North Carolina, Pennsylvania, and Virginia, showcasing the widespread impact of the violations. Moreover, in an effort to prevent similar infractions in the future, the employers have been forbidden from further violating the FLSA and are required to retain a qualified consultant to ensure compliance with payroll and record-keeping practices.

Inclusion and Justice for Employees

One significant aspect of this settlement is the commitment to providing back pay and liquidated damages to both current and former employees, regardless of their immigration status. This emphasizes the DOL’s dedication to upholding fair labor practices for all workers, irrespective of their background or legal status. Ensuring justice for employees who have suffered wage violations is a crucial step in safeguarding their rights and promoting a more equitable workforce.

The DOL’s Nationwide Impact

Plaza Azteca’s case is not the only instance of the DOL actively pursuing back wages from restaurant owners. Throughout the year, the DOL has successfully recovered unpaid wages from dozens of establishments across the country. These efforts reflect the agency’s commitment to combating wage theft and defending the rights of American workers, especially in industries known for labor violations.

Plaza Azteca’s agreement to pay $11.4 million in back wages and liquidated damages illustrates the seriousness of the violations committed by the restaurant chain. The DOL’s consent judgment, the largest recovery in back wages from a restaurant this year, sends a strong message to other employers that disregarding overtime and minimum wage practices will not go unpunished. The inclusion of current and former employees, regardless of immigration status, demonstrates the agency’s commitment to protecting the rights of all workers. As the DOL continues to recover back wages from restaurants across the nation, it serves as a crucial reminder that fair labor practices are essential for fostering a just and equitable work environment.

Explore more

D365 Supply Chain Tackles Key Operational Challenges

Imagine a mid-sized manufacturer struggling to keep up with fluctuating demand, facing constant stockouts, and losing customer trust due to delayed deliveries, a scenario all too common in today’s volatile supply chain environment. Rising costs, fragmented data, and unexpected disruptions threaten operational stability, making it essential for businesses, especially small and medium-sized enterprises (SMBs) and manufacturers, to find ways to

Cloud ERP vs. On-Premise ERP: A Comparative Analysis

Imagine a business at a critical juncture, where every decision about technology could make or break its ability to compete in a fast-paced market, and for many organizations, selecting the right Enterprise Resource Planning (ERP) system becomes that pivotal choice—a decision that impacts efficiency, scalability, and profitability. This comparison delves into two primary deployment models for ERP systems: Cloud ERP

Selecting the Best Shipping Solution for D365SCM Users

Imagine a bustling warehouse where every minute counts, and a single shipping delay ripples through the entire supply chain, frustrating customers and costing thousands in lost revenue. For businesses using Microsoft Dynamics 365 Supply Chain Management (D365SCM), this scenario is all too real when the wrong shipping solution disrupts operations. Choosing the right tool to integrate with this powerful platform

How Is AI Reshaping the Future of Content Marketing?

Dive into the future of content marketing with Aisha Amaira, a MarTech expert whose passion for blending technology with marketing has made her a go-to voice in the industry. With deep expertise in CRM marketing technology and customer data platforms, Aisha has a unique perspective on how businesses can harness innovation to uncover critical customer insights. In this interview, we

Why Are Older Job Seekers Facing Record Ageism Complaints?

In an era where workforce diversity is often championed as a cornerstone of innovation, a troubling trend has emerged that threatens to undermine these ideals, particularly for those over 50 seeking employment. Recent data reveals a staggering surge in complaints about ageism, painting a stark picture of systemic bias in hiring practices across the U.S. This issue not only affects