A restaurant chain is paying $11.4 million in back wages and damages after an investigation by the Department of Labor.
East Coast Mexican restaurant Plaza Azteca will repay more than 1,000 employees after the investigation found that the company violated federal law regarding overtime and minimum wage.
The money was recovered after investigations and litigation regarding 40 Plaza Azteca locations owned by Ruben Leon in seven states -- Pennsylvania, Connecticut, Maryland, Massachusetts, New Jersey, North Carolina and Virginia.
“Our investigators found Plaza Azteca knew of its legal obligations to pay workers minimum wage and overtime and keep accurate payroll records and yet, willfully disregarded federal law,” said Wage and Hour Administrator Jessica Looman. “The employers failed to pay full wages to more than 1,000 employees. The court’s action in this case is an important step in our efforts to make a meaningful difference in the lives of these workers by recovering their hard-earned wages.”
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The DOL alleged that numerous restaurants paid back-of-the-house employees predetermined amounts, which violated the Fair Labor Standards Act.
Employees who worked up to 40 hours in a week were not paid the required minimum wage and some were entitled to time-and-a-half wages for overtime hours. The employers also didn't keep records of employees’ hours and wages, the DOL said.
