Mexican restaurant chain Plaza Azteca will pay $11.4 million in back wages to more than 1,000 employees across seven states, including nearly $500,000 to workers at its one New Jersey location, according to authorities.

The recovery, which was announced Nov. 9 by the U.S. Department of Labor, stems from a consent judgment entered by the U.S. District Court for the Eastern District of Virginia that resolves litigation related to pay practices at more than 40 Plaza Azteca locations.

Following an investigation by the DOL’s Wage and Hour Division, the agency filed a complaint accusing chain owner Ruben Leon and his restaurants of violating overtime and minimum wage provisions of the Fair Labor Standards Act. Specifically, the department alleged that numerous Plaza Azteca restaurants paid back-of-the-house employees predetermined amounts, failing to pay them minimum wages or overtime.

The Virginia-based company also neglected to maintain accurate records of employees’ work hours and wages, as required, authorities said.

According to the DOL, Leon recently agreed to settle after months of litigation and just before a jury trial was set to begin.

Additionally, Plaza Azteca will pay $625,000 in civil money penalties due to the “repeated and willful nature of the violations,” and is required to retain a qualified independent consultant to make sure all payroll and record-keeping practices comply with the FLSA.

At its one New Jersey restaurant in Sicklerville, the DOL said Plaza Azteca will pay $477,996 in back wages and damages to 68 employees.

Wage and Hour Administrator Jessica Looman said in a statement, “The court’s action in this case is an important step in our efforts to make a meaningful difference in the lives of these workers by recovering their hard-earned wages.”

“This outcome sends a strong message to other restaurant industry employers of the costly consequences that can occur when they deprive employees of their full and rightful wages,” said the DOL’s solicitor of labor, Seema Nanda. “As we did in this case, the U.S. Department of Labor will strategically deploy our investigative and litigation resources to remedy systemic violations of the law at a national scale across an enterprise’s locations.”

The DOL also noted that damages are due to certain current or former employees of the chain, regardless of their immigration status and encourages anyone with questions to contact the Wage and Hour Division at 215-861-5180.

A representative from Plaza Azteca did not immediately respond to a request for comment.