Chicago Restaurant Group to Pay $125K in Back Wages for Overtime Violations

A consent judgment by the U.S. District Court for the Northern District of Illinois has mandated that D’Nuez Corp., operators of three Chicago-area restaurants, pay $125,000 in overtime back wages and liquidated damages to 53 employees. This follows a U.S. Department of Labor (DOL) investigation that revealed the company violated the Fair Labor Standards Act (FLSA).

From February 2021 to September 2023, investigators discovered that the company failed to compensate kitchen staff and servers with the required overtime rate for hours worked beyond 40 per week, instead paying straight time in cash. Additionally, the company did not display the mandatory FLSA poster at their workplaces.

Two restaurants in Chicago, located on S. Archer Avenue and W. 18th Street, were found to have committed these violations, while a third location in Berwyn was not implicated. Under the court order, D’Nuez Corp. must repay back wages in four installments over 90 days and take steps to comply with labor laws, including maintaining proper payroll records and providing detailed paystubs to employees.

This enforcement action underscores the importance of compliance with wage and hour laws to protect workers’ rights.