The U.S. Department of Labor has secured a consent judgment and order in the U.S. District Court for the Northern District of Illinois, compelling D’Nuez Corp. and its owners, Antonio Rendon and Albino Rendon, to compensate 53 employees with $125,000 in back wages and liquidated damages. The judgment was finalized on December 2, 2024.
The case addresses violations identified by the department's Wage and Hour Division investigators. The company, which operates three restaurants in Chicago and Berwyn, failed to comply with the Fair Labor Standards Act (FLSA). Specifically, they did not pay servers and kitchen staff an overtime premium of time and one-half their hourly rate for hours worked beyond 40 per week. Instead, overtime hours were compensated in cash at straight time rates. Additionally, the restaurants neglected to display an FLSA-required poster.
The court’s decision follows a review of payroll records from two Mexican-fusion restaurants located on S. Archer Avenue and W. 18th Street in Chicago, covering February 28, 2021, to September 26, 2023. This review concluded that $62,500 was owed in back wages to affected employees. The third restaurant on Cermak Road in Berwyn was not part of this lawsuit.
D’Nuez Corp. is required to repay these back wages through four equal installments within a 90-day period. They must also provide employees with FLSA information, maintain accurate payroll records, and issue detailed pay stubs each pay period.
Trial attorney Correll L. Kennedy represented the Department of Labor's Office of the Solicitor in this case.
“For decades, federal law has required that most workers be paid overtime at time and one-half their average hourly rate of pay and yet our investigators all too commonly find employers failing to meet this legal obligation,” stated Wage and Hour District Director Tom Gauza in Chicago. “Employers must know and comply with federal wage laws and pay workers their rightfully earned wages.”
Christine Heri, Regional Solicitor of Labor in Chicago added: “The U.S. Department of Labor will take all necessary legal measures to recover back wages owed to workers and hold employers accountable for following the law.”
In fiscal year 2023 alone, the Wage and Hour Division recovered over $29 million nationwide for workers in the food service industry.
For more information about rights under wage laws or if there are concerns about owed back wages collected by the division, individuals can contact the agency’s helpline at 866-4US-WAGE (487-9243). The Department also offers a Timesheet App available for iOS and Android devices to ensure accuracy in tracking hours worked.
