The operator of four
Chicken Palace restaurants located throughout southeast Wisconsin has been charged with failing to pay his employees properly, causing him to owe nearly half a million dollars in back wages.
Valdemar Escobar is the sole owner of the four Chicken Palace locations, according to a lawsuit filed Thursday. The restaurants are located at 1937 W. Forest Home Ave. in Milwaukee, 3433 W. National Ave. in Milwaukee, 435 W. Sunset Drive in Waukesha, and 3907 52
nd St. in Kenosha.
The Department of Labor, through its Labor, Wage and Hour Division, investigated Escobar’s employment and pay practices from March 2021 through March 2023, according to the lawsuit.
Escobar managed and supervised all employees and restaurant operations throughout the duration of the Department of Labor’s investigation.
At the Forest Home location, Escobar is accused of failing to pay eight of his employees overtime for time they worked in excess of 40 hours.
At the National Avenue, Kenosha and Waukesha locations, Escobar allegedly failed to pay the minimum wage of $7.25 per hour worked. Employees at this location also did not receive overtime.
Escobar is also accused of failing to maintain and preserve an accurate record of hours worked and pay earned by employees across all Chicken Palace locations.
He owes approximately $452,120 to his employees, according to the lawsuit.
“(Escobar) may also owe additional back wages and liquidated damages during the investigation period to employees whose identities are presently unknown to the (Department of Labor),” according to the lawsuit.
Escobar did not respond to a message left Thursday morning.
