NORFOLK, Va. — Plaza Azteca is a popular Mexican restaurant that has more than 40 locations across the East Coast.
Currently, the restaurant chain is under investigation by the United States Department of Labor after word spread that employees were not getting compensated for working overtime.
Roberto Melendez, the Wage and Hour Division Director in Richmond says unpaid work can add up quickly. What may seem like a few dollars at the time can translate into hundreds of dollars at the end of a pay period.
News
Plaza Azteca to pay over $11M in back wages following investigation
This is why the U.S Department of Labor served up some justice for more than a thousand restaurant workers. After a thorough investigation that started back in 2019, the department recovered $11.4 million in back wages and liquidated damages for employees of Plaza Azteca.
Officials with the Department of Labor say this investigation follows complaints that the Plaza Azteca owner, Ruben Leon, and the restaurants violated minimum wage and overtime of employees.
According to the Department of Labor, some employees were even paid "predetermined" amounts. This meant that people working up to 40 hours a work week weren't getting required minimum wage. Those working over 40 hours also did not get paid time and half.
The Department of Labor also says the restaurant didn't accurately keep track of work hours and wages.
However, it's not just Plaza Azteca under fire. Melandez says unfair pay is also an issue at many other U.S. restaurants.
Watch previous coverage: Plaza Azteca to pay over $11M after investigation into its restaurants, including some in Hampton Roads
"In general, we do find that the restaurant industry does have a problem in correctly compensating employees for overtime," said Melandez. "It is something that we continuously look at year after year."
We reached out an attorney representing Plaza Azteca, Luis A. Santos, who stated the following:
Melendez says the Department of Labor works hard to try and educate employers to protect the employees, but they don't always have eyes on the inside.
Melendez says if you're a worker, a labor violation is not something to stay silent about.
If you think you have an issue at your place of work please call this toll free help line 866-487-9243.
