The U.S. Department of Labor has secured a court judgment to recover $442,140 in back wages and damages for 29 employees at four Chicken Palace restaurants in the Milwaukee area. The investigation revealed that the restaurants, owned by Valdemar Escobar, failed to pay overtime, minimum wage, and maintain accurate time records, violating the Fair Labor Standards Act. As a result, the U.S. District Court directed Chicken Palace to pay $221,070 in back wages, an equal amount in damages, and a $10,000 penalty for willful violations.
From March 2021 to March 2023, the investigation found that employees were paid straight-time rates for overtime and often fell below minimum wage. In addition to financial penalties, Chicken Palace agreed to provide workers with educational materials about their rights under the FLSA in languages they speak and to refrain from future violations. In fiscal year 2023, the Wage and Hour Division of the Department of Labor recovered more than $29 million in back wages for nearly 26,000 food service industry workers nationwide.
This case serves as a reminder that the Department of Labor will continue to hold employers accountable, ensuring workers receive the pay they are rightfully owed while promoting fairness across the industry.
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