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

Vietnam Adopts Huawei and ZTE for 5G Network Expansion

Imagine a nation at the crossroads of technological innovation and geopolitical chess, where the decision to build a cutting-edge 5G network could redefine its global standing. Vietnam finds itself in this exact position, making waves in the telecommunications market by partnering with Chinese tech giants Huawei and ZTE for its 5G infrastructure rollout. This strategic pivot, driven by economic imperatives

Abbott Faces FLSA Lawsuit Over Overtime Pay Miscalculations

Dive into the complex world of labor law with Ling-Yi Tsai, an HRTech expert with decades of experience guiding organizations through the intricacies of compliance and technology integration. With a deep focus on HR analytics and payroll systems, Ling-Yi offers unparalleled insight into wage and hour disputes, particularly those under the Fair Labor Standards Act (FLSA). In this interview, we

Testlify and Workday Unite to Transform Enterprise Hiring

Picture a sprawling enterprise with hundreds of roles to fill, where recruiters are buried under endless resumes, struggling to identify the right talent swiftly and fairly. In today’s fast-paced corporate landscape, this scenario is all too common, with inefficiencies in hiring often costing companies valuable time and resources. The integration of cutting-edge technology into human resources systems offers a lifeline,

Trend Analysis: AI-Driven Mobile Search Integration

Imagine this: you’re on the go, phone in hand, needing an answer to a complex question within seconds—say, planning a last-minute trip with dietary restrictions and budget limits. Before you even finish typing, your mobile search not only suggests a plan but also converses with you to refine it, all without leaving the app. This isn’t a distant dream but

How Is AI Poisoning Reviving Black Hat SEO Tactics?

Imagine a world where a simple query to an AI assistant about a trusted brand returns a flood of false claims—say, that their product fails safety standards or doesn’t even exist in the market. This isn’t a far-fetched sci-fi plot but a growing reality known as AI poisoning, a sinister revival of Black Hat SEO tactics in the age of