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The Puerto Rico Department of Labor and Human Resources (DTRH) has opened an investigation into the mass layoffs at Encanto Restaurants, the franchisee that operates KFC, Taco Bell, Pizza Hut and IHOP on the island. Labor and Human Resources Secretary María del Pilar Vélez Casanova announced the probe on Thursday, saying it will determine whether the company failed to give the legally required 60‑day advance notice to employees and whether workers are owed unpaid wages or accrued benefits. “At the press conference at La Fortaleza, Vélez Casanova said the Department of Labor has the authority to investigate through its labor standards bureau,” she explained. “We need to determine why employees were not notified, whether wages are still owed, and whether there are outstanding payments related to vacation or other leave balances.” The secretary added that officials learned of the closures through media reports and social media rather than direct notification from Encanto Restaurants, and that investigators will assess what company executives knew about the circumstances leading to the shutdowns. Encanto Restaurants reportedly employs between 2,600 and 2,700 workers across its various brands, according to DTRH payroll records. The figure may not represent the final number of layoffs, as some locations experienced only partial closures. As of Thursday, about 500 former employees had already applied for unemployment benefits. Weekly benefits in Puerto Rico range from $88 to $240, depending on an individual’s wage history and eligibility requirements. If the investigation finds that Encanto Restaurants violated labor laws or failed to meet its obligations, the department will represent workers in pursuing claims. At the same press conference, Economic Development and Commerce Secretary Carlos Ríos Pierluisi announced a series of four job fairs and service events to help displaced workers find new employment. The events are scheduled for November 10 in Mayagüez, November 12 in San Juan, November 17 in Ponce and November 23 in Fajardo. More than 50 employers have registered, representing industries such as food service, manufacturing, services and defense. The fairs will also provide unemployment assistance, financial guidance, psychological support, job training resources and access to services from various government agencies. Ríos Pierluisi said the events will be open to former Encanto Restaurants employees and anyone seeking employment or career advancement. Several major restaurant chains, including Burger King, Wendy’s, Church’s Chicken, Popeyes, Denny’s and McDonald’s, have expressed interest in hiring displaced workers. Burger King alone is seeking to fill more than 500 positions. Despite the widespread closures, Ríos Pierluisi said discussions with Encanto Restaurants remain ongoing. The company has indicated it hopes to continue operating while addressing legal and business issues stemming from its franchise agreements. “Their expectation is to remain in operation,” he said. “This is a matter involving a franchisor and an operator with legal implications, so we are giving the company space to address that situation.” Article source: San Juan Daily Star | Image credit: San Juan Daily Star
The Puerto Rico Department of Labor and Human Resources (DTRH) has opened an investigation into the mass layoffs at Encanto Restaurants, the franchisee that operates KFC, Taco Bell, Pizza Hut and IHOP on the island. Labor and Human Resources Secretary María del Pilar Vélez Casanova announced the probe on Thursday, saying it will determine whether the company failed to give the legally required 60‑day advance notice to employees and whether workers are owed unpaid wages or accrued benefits. “At the press conference at La Fortaleza, Vélez Casanova said the Department of Labor has the authority to investigate through its labor standards bureau,” she explained. “We need to determine why employees were not notified, whether wages are still owed, and whether there are outstanding payments related to vacation or other leave balances.” The secretary added that officials learned of the closures through media reports and social media rather than direct notification from Encanto Restaurants, and that investigators will assess what company executives knew about the circumstances leading to the shutdowns. Encanto Restaurants reportedly employs between 2,600 and 2,700 workers across its various brands, according to DTRH payroll records. The figure may not represent the final number of layoffs, as some locations experienced only partial closures. As of Thursday, about 500 former employees had already applied for unemployment benefits. Weekly benefits in Puerto Rico range from $88 to $240, depending on an individual’s wage history and eligibility requirements. If the investigation finds that Encanto Restaurants violated labor laws or failed to meet its obligations, the department will represent workers in pursuing claims. At the same press conference, Economic Development and Commerce Secretary Carlos Ríos Pierluisi announced a series of four job fairs and service events to help displaced workers find new employment. The events are scheduled for November 10 in Mayagüez, November 12 in San Juan, November 17 in Ponce and November 23 in Fajardo. More than 50 employers have registered, representing industries such as food service, manufacturing, services and defense. The fairs will also provide unemployment assistance, financial guidance, psychological support, job training resources and access to services from various government agencies. Ríos Pierluisi said the events will be open to former Encanto Restaurants employees and anyone seeking employment or career advancement. Several major restaurant chains, including Burger King, Wendy’s, Church’s Chicken, Popeyes, Denny’s and McDonald’s, have expressed interest in hiring displaced workers. Burger King alone is seeking to fill more than 500 positions. Despite the widespread closures, Ríos Pierluisi said discussions with Encanto Restaurants remain ongoing. The company has indicated it hopes to continue operating while addressing legal and business issues stemming from its franchise agreements. “Their expectation is to remain in operation,” he said. “This is a matter involving a franchisor and an operator with legal implications, so we are giving the company space to address that situation.”
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