In a recent development, the U.S. Department of Labor has concluded its investigation into Plaza Azteca Mexican restaurants, a popular chain with three locations in the Pittsburgh area. The investigation revealed that the company had violated minimum wage and overtime provisions of the Fair Labor Standards Act, leading to an agreement to pay $11.4 million in back wages and damages to over 1,000 employees.

According to the department's Wage and Hour Division, Plaza Azteca had been paying predetermined amounts to their back-of-the-house employees, resulting in some workers not receiving minimum wage for their 40-hour workweek and others being denied proper overtime pay. In addition, the company was found to have failed in maintaining accurate records of work hours and wages, as required by law.

Wage and Hour Administrator Jessica Looman expressed the Department of Labor's disappointment in Plaza Azteca's actions, stating, "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." Looman emphasized that this court action is a significant step towards rectifying the situation and ensuring that hard-earned wages are recovered for affected employees.

The $11.4 million recovery stems from a consent judgment that settles litigation across more than 40 Plaza Azteca Mexican restaurants owned by Ruben Leon in seven states. Following an extensive investigation by the Wage and Hour Division, the Department of Labor filed a complaint alleging violations of overtime and minimum wage provisions.

Remarkably, the employers agreed to the consent judgment only after months of litigation, just as a jury trial was about to commence. As part of the settlement, Plaza Azteca will also face $625,000 in penalties.

The Department of Labor made it clear that the back wages and damages are owed to both current and former employees, regardless of their immigration status. Employees who believe they may be affected by this case are strongly encouraged to contact the Wage and Hour Division at 215-861-5180 for further information or assistance.

This significant settlement serves as a reminder to businesses across the nation to uphold fair labor practices and adhere to federal wage regulations. The Department of Labor remains committed to protecting employees' rights and ensuring that all workers are compensated fairly for their hard work.