The fed investigation from the U.S. Department of Labor found that Escobar repeatedly violated overtime and minimum wage federal laws and was fined up to $10K in penalties, which 29 employees from four Chicken Palace restaurants operated by Escobar were awarded more than $442K in back wages.
By H. Nelson Goodson
Hispanic News Network U.S.A.
October 24, 2024
Milwaukee, Wisconsin - A press release from the Office of the Solicitor, U.S. Department of Labor reported that on Monday, a federal judge from the U.S. District Court of the Eastern District of Wisconsin ordered Chicken Palace, LLC restaurants and Valdemar Escobar, the owner of two Milwaukee locations (3433 W. National Ave and 1937 W. Forest Home Ave.), and two locations in Waukesha (435 W. Sunset Dr.) and Kenosha (3907 52 St.), to pay $221,070 in back wages and an equal amount of liquidated damages to the 29 affected workers, and a civil money penalty of $10,000 to the department for their willful Fair Labor Standards Act violations.
The Chicken Palace franchise will pay a total of $442,140 to 29 employees that were affected in the case.
The action comes after the department's Wage and Hour Division found, from March 7, 2021, through March 8, 2023, the employer violated federal regulations by doing the following:
• Paying employees straight-time pay rates for overtime hours over 40 in a workweek.
• Failing to pay employees the required minimum wage.
• Not maintaining complete and accurate time records, as required.
In addition to paying back wages, damages and penalties, Chicken Palace LLC and Escobar agreed to provide employees the Wage and Hour Division's Handy Reference Guide to the Fair Labor Standards Act and other information on their federal wage protections in languages employees speak. The restaurants and Escobar also agreed to an injunction prohibiting future FLSA violations.
The family-owned Fiesta Garibaldi Restaurant Group owns the Chicken Palace Fiesta Garibaldi brand. In addition to its chicken franchise, the company has seven restaurants operating as Fat Valdy's, Fiesta Café and Fiesta Garibaldi Mexican grill in Milwaukee, Kenosha and Waukesha. Only the four Chicken Palace restaurants are involved in this consent judgment.
U.S. Department of Labor v. Chicken Palace LLC, et, al, Valdemar Escobar
Civil Action No. e 2:24-cv-01124-LA
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