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

Omantel vs. Ooredoo: A Comparative Analysis

The race for digital supremacy in Oman has intensified dramatically, pushing the nation’s leading mobile operators into a head-to-head battle for network excellence that reshapes the user experience. This competitive landscape, featuring major players Omantel, Ooredoo, and the emergent Vodafone, is at the forefront of providing essential mobile connectivity and driving technological progress across the Sultanate. The dynamic environment is

Can Robots Revolutionize Cell Therapy Manufacturing?

Breakthrough medical treatments capable of reversing once-incurable diseases are no longer science fiction, yet for most patients, they might as well be. Cell and gene therapies represent a monumental leap in medicine, offering personalized cures by re-engineering a patient’s own cells. However, their revolutionary potential is severely constrained by a manufacturing process that is both astronomically expensive and intensely complex.

RPA Market to Soar Past $28B, Fueled by AI and Cloud

An Automation Revolution on the Horizon The Robotic Process Automation (RPA) market is poised for explosive growth, transforming from a USD 8.12 billion sector in 2026 to a projected USD 28.6 billion powerhouse by 2031. This meteoric rise, underpinned by a compound annual growth rate (CAGR) of 28.66%, signals a fundamental shift in how businesses approach operational efficiency and digital

du Pay Transforms Everyday Banking in the UAE

The once-familiar rhythm of queuing at a bank or remittance center is quickly fading into a relic of the past for many UAE residents, replaced by the immediate, silent tap of a smartphone screen that sends funds across continents in mere moments. This shift is not just about convenience; it signifies a fundamental rewiring of personal finance, where accessibility and

European Banks Unite to Modernize Digital Payments

The very architecture of European finance is being redrawn as a powerhouse consortium of the continent’s largest banks moves decisively to launch a unified digital currency for wholesale markets. This strategic pivot marks a fundamental shift from a defensive reaction against technological disruption to a forward-thinking initiative designed to shape the future of digital money. The core of this transformation