Business & Tech

Restaurant With CT Location Settles $11.4 Million Wage Theft Claims

A Mexican chain restaurant with a Connecticut location has reached a settlement on wage violations, according to labor officials.

CONNECTICUT — Plaza Azteca restaurants in Connecticut and six other states have paid $11.4 million in back wages and liquidated damages to settle wage violation allegations, according to the U.S. Department of Labor.

Plaza Azteca has agreed to settle wage theft claims at restaurants in Virginia, North Carolina, Connecticut, Maryland, Massachusetts, New Jersey, and Pennsylvania for $11.4 million.

The settlement comes just before a jury trial was set to begin. The claims apply to a total of 40 restaurants and 1,000 employees.

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The restaurant chain failed to pay minimum wage to full-time workers and failed to pay overtime to employees who worked more than 40 hours per week. Kitchen workers were also paid predetermined amounts rather than a regular wage, labor officials said.

The violations took place between 2016 and 2021, according to the labor department.

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“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,” Wage and Hour Administrator Jessica Looman said in a statement. “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.”

The restaurant will also pay $625,000 in civil penalties due to "the repeat and willful nature of the violations," the labor department said.

Plaza Azteca operates a Connecticut location on the Berlin Turnpike in Newington, according to the restaurant's website.

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