Over two dozen former employees of Delia’s Tamales are taking legal action against the company for alleged wage theft. The employees, mostly retirees, claim that the company engaged in wage theft and used threats of immigration enforcement and deportation to silence them as many of them were undocumented migrants. However, a federal magistrate judge recently ruled against allowing the plaintiffs to name Delia Garza, the company’s founder, as a defendant in the lawsuit.
Dina Arévalo, a reporter covering the story, mentioned that the original lawsuit did not name Delia Garza as a defendant. The case underwent several changes since it was filed, and when the former employees sought to add Garza’s name and reintroduce additional allegations, the judge denied their request citing missed deadlines for amending the lawsuit.
The lawsuit, which has garnered significant attention due to Delia’s Tamales’ popularity in the Rio Grande Valley, is not the company’s only legal issue. In July, the FBI conducted raids on all the restaurant locations as part of an ongoing criminal investigation. While details of the investigation remain undisclosed, the presence of IRS Criminal Investigations agents suggests potential tax-related issues.
Despite the legal troubles, Delia’s Tamales continues to attract customers, and the lawsuit is ongoing. The case is currently structured with individual complaints from each former employee, raising questions about whether it should be a collective action lawsuit. The next court hearing is scheduled for February, following a final deadline in a month.
The success story of Delia Garza, from selling tamales door-to-door to building a popular restaurant chain, has drawn attention from public figures like Governor Greg Abbott, who has previously showcased the company at events. The future of the lawsuit and the criminal investigation will likely have implications for the company and its founder as they navigate these legal challenges.
