Federico's Mexican Food ordered to pay $202K

Posted at 10:24 AM, May 24, 2016
and last updated 2016-05-24 13:34:42-04

A popular Valley restaurant has been ordered to pay over $200,000 to employees.

Federico’s Mexican Food has been ordered to pay workers $202,000 for overtime back wages and damages.
An investigation by the US Department of Labor found four locations of the restaurant chain failed to pay workers overtime pay after they worked over 40 hours in a week.

According to the US Department of Labor, the company paid employees overtime at the regular rate, not the overtime rate, in cash and off the record.

“Wage violations, especially with overtime, are far too common in the restaurant industry,” said Eric Murray, district director for the Wage and Hour Division in Phoenix. “We will continue to ensure that workers get paid all the wages they rightfully earn, even if some employers use tactics such as paying cash and off-the-books to avoid what is required by law.”

The locations where the unfair practices occurred:             

4014 North 43 Avenue, Phoenix, Arizona
3730 West Happy Valley Road, Suite 109, Glendale, Arizona
20429 North Lake Pleasant, Suite 101, Peoria, Arizona
7410 South 35 Avenue, Laveen, Arizona

Federico's has 21 locations in Arizona.

This is not the first time the restaurant has been in trouble, in 2003 they had an E. coli outbreak.