Labor Department Orders Backpay from Plaza Azteca

The owner of more than 40 locations in the Mexican restaurant chain paid workers less than minimum wage.

The Department of Labor found that more than 40 Plaza Azteca restaurants illegally withheld wages from over 1,000 restaurant employees at locations in Connecticut, Maryland, Massachusetts, New Jersey, North Carolina, Pennsylvania, and Virginia. The department ordered the owner to pay $11.4 million in back wages and liquidated damages this month. The owner withheld wages by paying back-of-the-house employees predetermined amounts. This move violated the Fair Labor Standards Act, resulting in pay below minimum wage without overtime compensation.

“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 the department’s 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.”

As the Lord Leads, Pray with Us…

  • For Administrator Looman as she oversees the Wage and Hour Division.
  • For U.S. labor officials as they seek to ensure proper compensation for American employees.
  • For Acting Labor Secretary Julie Su as she heads efforts to enforce the Fair Labor Standards Act.

Sources: Department of Labor


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