News Release
US Department of Labor recovers $128K in back wages, damages after investigation finds McDonald’s franchisee shortchanged workers in Yuma
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 than $34.7 million in back wages for nearly 30,000 food service workers. In March 2022, the Bureau of Labor Statistics estimates approximately 810,000 workers quit their jobs and more than 1.4 million job openings existed in the accommodations and food services industry.
“As restaurant industry employers continue to struggle to recruit employees, those who deny their workers their full wages will likely struggle to find and retain the workers they need to operate their businesses,” Murray added.
The division enforces the law regardless of a worker’s immigration status and can speak confidentially with callers in more than 200 languages. For more information about the FLSA and other laws enforced by the division, contact its toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division.
