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TACOnganas under federal investigation for possible wage and hours violations

The U.S. Department of Labor confirmed an active investigation is underway against the Memphis food truck chain's owner.

MEMPHIS, Tenn. — Memphis-based Mexican food truck chain TACOnganas is the target of a federal investigation into wage and hour law compliance, the U.S. Department of Labor (DOL) confirmed Wednesday.

The DOL's Wage and Hour Division launched the investigation to determine whether TACOnganas owner Greg Diaz is in compliance with laws they enforce under the Fair Labor Standards Act, which include:

  • Minimum wage
  • Paid overtime 
  • Child labor
  • Record keeping

The DOL did not specify which law exactly Diaz and TACOnganas may have violated.

Diaz had been under fire in recent weeks on social media over posts asking for workers in Mexico, offering 13,000 Mexican Pesos (around $665) per week to work 72 hours a week, about $9.23 per hour.

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According to the Fair Labor Standards Act, all employees working more than 40 hours in a standard work week must be paid overtime.

"The Wage and Hour Division has an open investigation of this employer to determine compliance of the laws we enforce," A DOL spokesperson told ABC24. "This is an open investigation so no further details can be provided at this time."

According to the DOL, TACOnganas could be forced to pay unpaid wages to employees if found in violation of laws they enforce. The establishment could also be the target of a federal lawsuit. 

"It's odd that allegations have gone around but not one from [someone] who actually works here," Diaz said in a social media post in October. 

The Memphis food truck chain recently opened a fifth location in April, and expanded to its first brick-and-mortar location in March.

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