EMPLOYMENT LAW: Federal Judge Awards $1 M to Underpaid Mexican Restaurant Workers

May 30, 2011

Urbana -- A federal judge has awarded more than $ 1 million to some 64 workers of El Matador Inc. and El Caporal Inc. for a wage and hour lawsuit filed in Urbana court, reports said.

The federal judge issued a decision in favor of the servers and kitchen staff of the two Mexican restaurants who complained of unfair wage and hour treatment under their employer, according to reports.

Reports said Urbana court ordered Dolores Onate (owner) and Ricardo Onate (manager) to pay $1,149,702.50 to their employees as back wages and damages for violating record-keeping regulations of Fair Labor Standards Act.

According to Department of Labor's statement, the defendants willfully violated the wage and hour laws to escape paying exact amount. Dolores and Ricardo Onate also implemented unfair record-keeping policies to tamper payroll sheets.

The defendants compelled the workers to return part of their earnings to the restaurant and report less hours. The investigation of Wage and Hour Division showed that the wait staff received only the average tips from the customers.

Judge McCuskey said that the defendants asked the workers to return the pay checks, and sign in at a predetermined time though they have worked earlier. The employees ended up receiving only average tips from customers and not their actual wages as stated in the pay slips. These actions show how intentionally the Onates have violated wage and hour law.

The decision states Onates' penalty of paying $387,429.87 to 34 El Matador's workers, and $187,421.41 to 30 El Caporal employees plus liquidated damages.

The federal judge also ordered the defendants to comply with the Hour and Wage regulations, post the employee rights, and report complaints from the workers.