Delia's Tamales Settles Worker Lawsuits in South Texas

Confidential deals end federal suits alleging wage theft and unsafe conditions at popular tamale chain.

Published on Feb. 5, 2026

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Delia's Tamales, a popular South Texas tamale chain, has reached confidential settlements with former employees who accused the company of unpaid wages and unsafe working conditions. The legal battles, which began with a state-court complaint in 2023 and expanded to federal court, have now been resolved through the settlements, though details about the amounts paid remain under wraps. Federal agents also conducted searches at Delia's locations in 2024, though no criminal charges have been filed so far.

Why it matters

The Delia's Tamales case highlights ongoing concerns about worker exploitation and wage theft, particularly in the food service industry. The confidential nature of the settlements also raises questions about transparency and accountability for businesses accused of mistreating their employees.

The details

The legal battle started with a state-court complaint filed in 2023 on behalf of 26 former workers that was later moved into federal court. A second, broader federal lawsuit filed in January 2025 named founder Delia Lubin and other company officials. In October 2025, a judge granted summary judgment for Delia's on most overtime claims and tossed out the cases of 24 of 27 plaintiffs, sharply narrowing the dispute. The remaining claims and the separate 2025 case were ultimately resolved through confidential settlements.

  • In 2023, a state-court complaint was filed on behalf of 26 former Delia's Tamales workers.
  • In January 2025, a broader federal lawsuit was filed against Delia's Tamales and its officials.
  • In October 2025, a judge granted summary judgment for Delia's on most overtime claims and dismissed the cases of 24 of 27 plaintiffs.
  • In July 2024, federal agents from the FBI and IRS conducted court-authorized searches at Delia's locations across the Rio Grande Valley and in San Antonio.

The players

Delia's Tamales

A popular South Texas tamale chain that was accused of wage theft and unsafe working conditions by former employees.

Delia Lubin

The founder of Delia's Tamales, who was named in the broader federal lawsuit filed in 2025.

Richard Alamia

The attorney representing the former Delia's Tamales workers who reached confidential settlements with the company.

Peter Bray

The U.S. Magistrate Judge who signed orders directing the parties to file dismissal paperwork, effectively bringing the litigation to a close.

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What they’re saying

“We're very happy that we settled the case. My clients are very happy about it.”

— Richard Alamia, Attorney for former Delia's Tamales workers (MySanAntonio)

What’s next

It remains to be seen whether the federal investigations into Delia's Tamales will lead to any further action, such as criminal charges.

The takeaway

The Delia's Tamales case highlights the ongoing challenges of ensuring fair labor practices, particularly in the food service industry, and the need for greater transparency around settlements involving allegations of worker exploitation.