NewsIn Your CommunityNorfolk

Actions

Plaza Azteca on Norfolk's Granby St. abruptly closes months after chain's $11M lawsuit

1.4 million dollars restored to Plaza Azteca employees by Department of Labor
Posted
and last updated

NORFOLK, Va. — Mexican restaurant Plaza Azteca has closed its Norfolk location on Granby Street as of Friday, Aug. 16 — months after the chain was held liable to employees for $11 million in unpaid wages.

The location made the announcement in a post on its Facebook page. A call to the restaurant's listed phone number said it could not be completed, and the location page was no longer available on the chain's website.

"It is with a heavy heart that we announce the closure of our Downtown Norfolk location in 411 Granby Street Suite 110, Norfolk, Virginia, effective 08/16," the post said. "We are incredibly grateful for the support and love you've shown us over the years."

Watch: Plaza Azteca to pay $11M in back wages

Plaza Azteca to pay over $11M in back wages following investigation

Last November, Plaza Azteca agreed to pay $11.4 million to about 1,000 employees for unpaid wages after the Department of Labor said it violated overtime and minimum wage provisions.

The chain agreed to pay a consent judgment, entered by the U.S. District Court for the Eastern District of Virginia in Norfolk, after months of litigation and just before a jury trial was slated to begin.

Employees at the Granby Street location, in addition to locations in Elizabeth City, Hampton, Glen Allen, Warwick, Yorktown, Denbigh, and at the Norfolk Outlets, were listed among the defendants.

The department learned of the following details while investigating, according to the consent judgment and order:

The restaurants paid back-of-the-house employees set amounts. In doing so, they failed to pay some employees who worked up to 40 hours in a week the required minimum wage and didn't pay some employees time-and-a-half hours for hours over 40 in a workweek.

Watch: Ghent's Plaza del Sol closes after 18 years

Ghent's Plaza Del Sol closing its doors after 18 years

They also did not keep accurate records of employees' work hours and wages, which is a requirement.

“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 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.”

In The Granby Street's Facebook post Friday, it noted that the outlet location — its nearest to downtown Norfolk — is "excited to continue serving you."