Underpayment of wages and retaliation against employees: court forced restaurant chain to pay $750,000
On June 15, the U.S. Department of Labor announced that it had obtained a federal court order requiring four restaurants in Washington to pay $750,000 in back wages and compensation to 42 employees after violations of minimum wage and overtime laws were found.
The decision was made in the U.S. District Court for the Eastern District of Washington. It was the result of an investigation that found the owners Nolberto and Guillermina Rodriguez, who operate Blanco Inc. and Mi Rancho Chico Inc. (doing business as Rancho Chico in the cities of Spokane, Colville, and Omak), failed to pay employees the mandatory overtime premium—1.5 times the regular rate for all hours worked over 40 per week.
Additionally, some employees who were not exempt were paid a fixed salary for all hours worked, resulting in earnings below the federal minimum wage of $7.25 per hour. The investigation also uncovered unlawful retaliation against an employee who was fired after filing a wage complaint.
Violations of child labor laws were also found—minors were allowed to work with hazardous equipment.
After the investigation, the Rodriguezes agreed to pay the debts to 42 employees but failed to fulfill their obligations. This prompted the Department of Labor Solicitor's Office and the Eastern District of Washington Prosecutor's Office to seek court enforcement to recover the funds.
According to the court ruling, Rancho Chico and the Rodriguez family must pay $750,000 in compensation and comply with U.S. labor laws going forward, including properly paying all hours worked, maintaining accurate time records, and refraining from retaliating against employees for defending their rights.
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