US Department of Labor Recovers $11.4M in Back Wages for Over 1,000 Employees from East Coast Restaurant Chain Plaza Azteca
Investigation reveals Plaza Azteca knowingly violated federal law by failing to pay minimum wage and overtime, maintaining inaccurate payroll records, and agreeing to a consent judgment only after months of litigation and just before a jury trial was scheduled to begin.
- 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.
The Philadelphia Inquirer 