YUMA, AZ – A federal investigation that found the franchise operator of seven Yuma McDonald’s locations denied full wages owed to 332 workers has recovered $128,796 in back wages and liquidated damages for them.
The U.S. Department of Labor’s Wage and Hour Division determined that Jose Leon – the Calexico, California-based franchise owner and operator – violated the Fair Labor Standards Act’s overtime requirements when he failed to pay time-and-one-half an employee’s required rate of pay for hours over 40 in a workweek. Following its investigation, the employer paid $62,238 in overtime back wages and $62,238 in liquidated damages to the affected workers.
The division also found Leon violated federal minimum wage requirements when he failed to pay some employees for all the hours they worked. The violation led to the recovery of an additional $2,160 in back wages and an equal amount in damages for eight workers.
The department assessed Leon $20,263 in civil money penalties for the nature of the violations.
“The investigation shows the costly consequences faced by an employer whose pay practices failed to comply with federal overtime and minimum wage requirements,” said Wage and Hour Division District Director Eric Murray in Phoenix. “Employers should review their pay practices and contact the Wage and Hour Division with any questions or concerns to avoid similar circumstances.”
In more than 4,200 investigations in fiscal year 2021, the Wage and Hour Division recovered more...
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