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.