Overview

• The U.S. Department of Labor has recovered $11.4 million in back wages and damages for over 1,000 employees of the East Coast restaurant chain, Plaza Azteca, after a series of investigations and litigation.
• The restaurant chain knowingly violated federal law by failing to pay minimum wage and overtime, maintaining inaccurate payroll records, and only agreed to a consent judgment after months of litigation and just before a jury trial was scheduled to begin.
• The violations occurred at more than 40 Plaza Azteca locations owned by Ruben Leon in seven states, including Connecticut, Maryland, Massachusetts, New Jersey, North Carolina, Pennsylvania, and Virginia.
• The consent judgment also recovered $625,000 in civil money penalties due to the repeat and willful nature of the violations, bringing the total amount to be paid by the restaurant to around $12 million.
• In addition to the back wages and penalties, the consent judgment forbids the employers from violating the Fair Labor Standards Act in the future and requires them to retain a qualified independent consultant to ensure their payroll and recordkeeping practices comply with the Act.