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Delia’s operates seven locations in San Antonio and the Rio Grande Valley.
The claims the McAllen-based chain kept two sets of books arose Tuesday during an online status hearing hosted by U.S. Magistrate Judge Peter Bray, who's presiding over the case, news site MyRGV.com reports.
The Delia's chain operates six popular Rio Grande Valley restaurants and drew lines around the building when it opened its first San Antonio location in 2020.
The allegation of dual record-keeping was just the start for Tuesday's proceedings, according to MyRGV.com. Attorneys for the case's 27 plaintiffs also accused company founder and owner Delia Lubin of having restaurant crew members clean her home.
“There are plenty of different experiences where there were some people working, for example, some portion of their time as a housekeeper at the owner’s home,” plaintiff's attorney Douglas A’Hern said during the hearing.
Originally filed Aug. 31 in Hidalgo County District Court, the lawsuit alleges the Delia's chain helped employees acquire bogus Social Security numbers so they could work there. The complaint argued that company managers withheld Social Security taxes from staffers' paychecks but kept the deductions for the business. The suit also accuses the company of age discrimination.
Lubin isn't named as a defendant in the suit, only the Delia's chain itself. Officials for the business have denied wrongdoing.
Judge Bray gave both sides until the end of August to complete their depositions before moving on to the next phase of the lawsuit, MyRGV.com reports.
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