NORFOLK, Va. — East Coast Mexican restaurant chain Plaza Azteca must pay $11.4 million in back wages and damages to more than 1,000 employees after an investigation and litigation by the Department of Labor (DOL).
According to the DOL, the company violated federal law regarding overtime pay and minimum wage by paying back-of-the-house employees predetermined amounts.
"By doing so, the employers failed to pay some employees who worked up to 40 hours in a workweek the required minimum wage and did not pay some employees time-and-a-half for hours over 40 in a workweek," the DOL wrote in a news release. "The employers also failed to maintain accurate records of employees’ work hours and wages, as required."
The DOL said the payout was part of a consent judgment that came before the start of a jury trial for a lawsuit, which included Plaza Azteca locations in Connecticut, Maryland, Massachusetts, New Jersey, North Carolina, Pennsylvania and Virginia.
Court documents show the lawsuit was initially filed several years ago against owner Ruben Leon and more than 40 corporations doing business as Plaza Azteca restaurants.
There are more than a dozen Plaza Azteca restaurants in the Hampton Roads region and northeast North Carolina, and current or former workers of most of those restaurants are included in the payout.
Leon, who lives in Virginia Beach, maintains through his attorney that they did not break the law.
Luis Santos, a lawyer for Plaza Azteca, sent this statement to 13News Now: "Plaza disputes it violated the law but reached a resolution with the DOL to bring closure to this matter and allow the business to continue to focus on being a great employer and providing an excellent customer experience."
The DOL said the consent judgment also recovered $625,000 in civil money penalties from the employers. The company will also have to retain an independent consultant to make sure payroll and recordkeeping practices comply with federal laws.
“This outcome sends a strong message to other restaurant industry employers of the costly consequences that can occur when they deprive employees of their full and rightful wages,” Solicitor of Labor Seema Nanda wrote in a news release.
The DOL release says that the back wages and liquidated damages are due to certain current and former employees of Plaza Azteca restaurants, regardless of their immigration status. People affected by this case are encouraged to contact the DOL's Wage and Hour Division by calling 215-861-5180, if they have any questions.
Here's a breakdown of how that settlement affects each of the locations in our area.
Kill Devil Hills, NC
- 37 Employees
- $238,882 in back wages and liquidated damages
Elizabeth City, NC
- 35 Employees
- $161,062 in back wages and liquidated damages
Chesapeake
- 56 employees
- $544,050 in back wages and liquidated damages
Hampton
- 27 Employees
- $303,240 in back wages and liquidated damages.
Newport News
- 90 employees
- $1,027,586 in back wages and liquidated damages
Norfolk
- 44 employees
- $345,210 in back wages and liquidated damages
Suffolk
- 22 employees
- $227,768 in back wages and liquidated damages
Virginia Beach
- 126 employees
- $1,234,146 in back wages and liquidated damages
Williamsburg
- 25 employees
- $230,634 in back wages and liquidated damages
Yorktown
- 32 employees
- $182,516 in back wages and liquidated damages