Friday, 2 Oct 2026
Subscribe
States Top Leading News States Top Leading News
  • Headline News
  • Categories
  • Services
    • Directory
  • PR Distribution
    • Video Press Release
  • Donate
Font ResizerAa
STL.NewsSTL.News
Search
  • Headline News
  • Categories
  • Services
    • Directory
  • PR Distribution
    • Video Press Release
  • Donate
Have an existing account? Sign In
Follow US
© 2026 St. Louis Media, LLC d/b/a STL.News. All Rights Reserved.

Home » Business » Chicken Palace to Pay $442K – Back Wages – Damages

Business

Chicken Palace to Pay $442K – Back Wages – Damages

Martin Smith
Last updated: October 21, 2024 4:56 pm
Martin Smith - Editor in Chief
Share
Chicken Palace to Pay $442K - Back Wages - Damages
Chicken Palace to Pay $442K - Back Wages - Damages
SHARE

The US Department of Labor obtained judgment to recover $442K in back wages and damages for 29 workers at 4 Milwaukee-area Chicken Palace restaurants.

The investigation found overtime and minimum wage violations and assessed $10K in penalties to Chicken Palace.

MILWAUKEE, WI (STL.News): A federal court has ordered the operators of four Milwaukee-area chicken franchise restaurants to pay $442,140 to 29 employees in a consent judgment and order obtained following an investigation by the U.S. Department of Labor.

Contents
The US Department of Labor obtained judgment to recover $442K in back wages and damages for 29 workers at 4 Milwaukee-area Chicken Palace restaurants.The investigation found overtime and minimum wage violations and assessed $10K in penalties to Chicken Palace.

Today, the U.S. District Court for the Eastern District of Wisconsin directed Chicken Palace LLC restaurants and Valdemar Escobar, owner of two Milwaukee locations and two in Kenosha and Waukesha, to pay $221,070 in back wages and an equal amount in liquidated damages to the affected workers, and a civil money penalty of $10,000 to the department for their willful Fair Labor Standards Act violations.

The action comes after the department’s Wage and Hour Division found, from March 7, 2021, through March 8, 2023, the employer violated federal regulations by doing the following:

  • Paying employees straight-time pay rates for overtime hours over 40 in a workweek.
  • Failing to pay employees the required minimum wage.
  • Not maintaining complete and accurate time records, as required.

“Our food service industry investigations too often find employers violating federal overtime, minimum wage, and recordkeeping regulations, and workers unaware of their rights and afraid to question their paychecks’ accuracy,” said Wage and Hour Division District Director Kristin Tout in Minneapolis.  “The Department of Labor will continue to hold employers accountable while making sure every worker is paid what they rightfully earned.”

“Failing to pay workers their required wages hurts employees and results in the entire restaurant community facing unfair competition,” added Regional Solicitor Christine Z. Heri in Chicago.  “This outcome should remind employers that the Department of Labor will take appropriate action—including litigation—to protect workers who are denied their pay.”

In addition to paying back wages, damages, and penalties, Chicken Palace LLC and Escobar agreed to provide employees with the Wage and Hour Division’s Handy Reference Guide to the Fair Labor Standards Act and other information on their federal wage protections in the languages they speak.  The restaurants and Escobar also agreed to an injunction prohibiting future FLSA violations.

The family-owned Fiesta Garibaldi Restaurant Group owns the Chicken Palace Fiesta Garibaldi brand.  In addition to its chicken franchise, the company operates seven restaurants, such as Fat Valdy’s, Fiesta Café, and Fiesta Garibaldi Mexican Grill in Milwaukee, Kenosha, and Waukesha.  Only the four Chicken Palace restaurants are involved in this consent judgment.

Senior trial attorney Travis Gosselin litigated the case on behalf of the department’s Office of the Solicitor.

In fiscal year 2023, the Wage and Hour Division recovered more than $29 million in back wages for nearly 26,000 food service industry workers nationwide.

SOURCE: US Department of Labor

TAGGED:Wisconsin
Share This Article
Twitter Email Copy Link Print
By Martin Smith Editor in Chief
Follow:
Martin Smith is the founder and Editor in Chief of STL.News, an independent digital news publication owned and operated by St. Louis Media, LLC. He founded STL.News in 2016 and oversees its editorial direction and digital publishing operations. His coverage includes business, financial markets, securities litigation, government and regulatory developments, legal news, and St. Louis-area businesses and economic activity.
Press Release Distribution by STL.News
Best Webhost

Your Trusted Source for Accurate and Timely Updates!

Our commitment to accuracy, impartiality, and delivering breaking news as it happens has earned us the trust of a vast audience. Stay ahead with real-time updates on the latest events, trends.
FacebookLike
TwitterFollow
PinterestPin
InstagramFollow
Google NewsFollow
LinkedInFollow

Popular Posts

Christian Noel Medina Torres Pleads Guilty

Christian Noel Medina Torres Pleads Guilty for Possession with the Intent to Distribute Cocaine. ORLANDO,…

By Martin Smith

Overseas Overnight Trading for Sept. 26, 2025

Overseas Overnight Trading Summary for Friday, September 26, 2025 ST. LOUIS, MO (STL.News) Overseas Overnight…

By Martin Smith
Business Loans
States Top Leading News States Top Leading News
Facebook Instagram Pinterest Apple Google

About STL.News

STL.News is an independent digital news publication owned and operated by St. Louis Media, LLC. Founded in 2016, our mission is to provide accurate, timely, and accessible local, national, and international news, with an emphasis on St. Louis, business, and financial markets. 

Quick Links

  • About
  • Career
  • Corrections Policy
  • Staff Directory
  • Published Pages
  • Legal Disclaimer
  • Contact
  • FeedSpot
  • Google page
  • Donate
  • [email protected]
  • 417-529-1133
  • 36 Four Seasons Shopping Center # 310 Chesterfield, Missouri 63017 United States

© 2026 St. Louis Media, LLC d/b/a STL.News. All Rights Reserved.

adbanner
AdBlock Detected
Our site is an advertising supported site. Please whitelist to support our site.
Okay, I'll Whitelist
Welcome Back!

Sign in to your account

Lost your password?