Owners of Papa G’s restaurant in Huntley agree not to retaliate against employees questioned in a federal wage investigation

The owners of a Huntley restaurant agreed not to retaliate, discriminate, interrogate, withhold wages, fire or threaten to fire employees interviewed by investigators from the U.S. Department of Labor, according to a preliminary injunction filed June 9.

The U.S. Department of Labor filed a complaint last month in federal court asking for a temporary restraining order against Steve and Rick Tsakalios, owners of Papa G’s, claiming they were intimidating employees who were cooperating with a federal labor investigation at their restaurant.

“It is unacceptable and illegal for any employer to interfere with a Department of Labor investigation,” said Scott Allen, the department’s regional director for public affairs and media relations. “At no time should an employee feel threatened or intimidated by an employer to talk to a department of wage and hour investigator.”

The temporary restraining order stems from an ongoing investigation by the Department of Labor of the restaurant’s employment and pay practices from Feb. 3, 2019, through Jan. 20, 2022, according to court records. The department found the restaurant owners allegedly failed to pay eight of its employees the required one-and-a-half overtime rate when they worked more than 40 hours in a week, according to the complaint and a memorandum submitted in support of the restraining order request.

The complaint seeking the temporary restraining order claimed the owners were asking workers not to provide investigators any information, allegedly telling one employee repeatedly he did not have to speak to investigators, continually entering the area where the interviews were taking place and threatening to find out what employees said, according to the complaint filed in federal court.

The “retaliatory conduct has created a chilling effect on their employees,” the Department of Labor said in its request.

According to the injunction, restaurant owners also agreed not to communicate with employees from now until the trial with the purpose of investigating the labor department’s claims, preparing a defense or gathering evidence without first informing the employee in writing, with written translation in that employee’s primary language, about the lawsuit.

The employee also must know that whatever they tell their employer is voluntary and that they cannot be “discriminated or retaliated against in any way,” according to the order.

The injunction also states that the owners will allow the U.S. Secretary of Labor to distribute pamphlets to restaurant workers in English, Spanish or any other language informing the employees of their rights under the Fair Labor Standards Act.

Among protections listed in the pamphlet is the right to “speak freely” if employees participate in the investigation and to do so without any retaliation, the threat of being fired, having wages reduced or withheld, or being threatened that the restaurant owners will call immigration authorities, the order states.

The preliminary injunction was entered by stipulation, which means both sides agreed to the terms. Attempts Wednesday to reach the attorney representing Papa G’s were not successful.

Failing to pay proper wages hurts more than just the employee, Allen said.

“A restaurant not paying their employees properly also is not paying the amount of taxes they are required to pay,” Allen said. “This not only hurts employees, but other restaurants. It really is a disadvantage for the other restaurants in the area if someone is not paying proper wages.”

The Department of Labor recovers millions of dollars in back wages every year from all industries, he said.

“Unfortunately, the service industry is one of the worst for wage theft with employers not properly paying their employees,” Allen said.