PA Mexican Restaurant Chain Owes $11.4 Million To Employees: Feds

PENNSYVLANIA — A major Mexican restuarant chain with 20 locations in Pennsylvania owes its employees $11.4 million after it "repeatedly and willfully" avoided paying them, according to a ruling in federal court.

Owner Ruben Leon, who owns Plaza Azteca locations in seven states, violated basic overtime and minimum wage laws at several restaurants in Pennsylvania and elsewhere. The ruling by the U.S. District Court for the Eastern District of Virginia in Norfolk also fined the company $625,000 in civil penalties.

“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 said in a statement. “As we did in this case, the U.S. Department of Labor will strategically deploy our investigative and litigation resources to remedy systemic violations of the law at a national scale across an enterprise’s locations.”

Plaza Azteca paid its employees pre-determined amounts before their shifts started, which did not meet the minimum wage. They also failed to pay overtime when employees exceeded 40 hours a week, officials said.

In Pennsylvania, the chain has locations in Allentown, Altoona, Blandon, Boyertown, Hanover, Exton, Kennett Square, King of Prussia, Lancaster, Mechanicsburg, Mount Penn, Myerstown, Plymouth Meeting, Robinson Township, Saucon, State College, Washington, White Oak, Wyomissing, and York. Most of those locations are involved in the judgement.

U.S. Department of Labor Wage and Hour Administrator Jessica Looman said Plaza Azteca knew what they were breaking the law yet "willfully" continued to pay, impacting more than a thousand employees.

Anyone who may have been impacted by this case but who has since moved on to Plaza Azteca should call investigators at 215-861-5180 to ensure they are compensated.