The operator of four
Chicken Palace restaurants located throughout southeast Wisconsin has been ordered to repay more than $400,000 dollars to his employees, according to a newly filed judgement.
Valdemar Escobar was first charged with failing to pay his employees proper wages in U.S. District Court for the Eastern District of Wisconsin in September.
Escobar owns four Chicken Palace locations. 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 52nd 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.
At the Forest Home location, Escobar failed 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 failed to pay the minimum wage of $7.25 per hour worked. Employees at these locations also did not receive overtime.
He owed his employees approximately $452,120, according to a federal complaint filed in September.
This week’s judgement orders Escobar to pay back $452,140. From that total, $221,070 will go toward unpaid wages and overtime compensation while the remaining $221,070 serves as damages.
Escobar must also pay a civil penalty of $10,000, according to the judgment.
