Court order requires Spokane-based restaurant to pay $750K in wages, damages after federal investigation
SPOKANE, Wash. — The U.S. Department of Labor said Monday that it has secured a federal consent judgment requiring four Washington-based restaurants to pay $750,000 in back wages and damages to 42 workers after an investigation uncovered minimum wage and overtime violations.
Entered in the U.S. District Court for the Eastern District of Washington, the order comes after the department found Nolberto and Guillermina Rodríguez, owners of Blanco Inc. and Mi Rancho Chico Inc., doing business as Rancho Chico in Spokane, Colville and Omak, failed to pay employees required overtime of time and one-half their regular rate of pay for all hours worked over 40 in a workweek.
Additionally, Rancho Chico paid some nonexempt employees on a salaried basis for all hours worked, which led to earnings below the federal minimum wage of $7.25 per hour. In addition, the investigation found that Rancho Chico engaged in unlawful retaliation after terminating an employee who filed a wage complaint.
“Rancho Chico violated federal minimum wage, overtime, and anti-retaliation laws when they knowingly underpaid employees who worked long hours to support themselves and their families,” said Wage and Hour Division Administrator Andrew Rogers. “Disregarding the findings of a Wage and Hour Division investigation carries serious repercussions. I encourage employers to regularly review their pay practices, reach out for compliance assistance, and immediately address violations.”
Investigators also found that Rancho Chico also violated federal child labor laws prohibiting minors from operating hazardous equipment.
Following the investigation, the Rodríguezes agreed to pay back wages to the 42 employees but ultimately failed to pay the amounts owed. This led the department’s Office of the Solicitor and the U.S. Attorney’s Office for the Eastern District of Washington to pursue a federal court order to compel payment of the back wages and damages.
Under the consent judgment, Rancho Chico and the Rodríguezes must pay $750,000 in back wages and damages and comply with federal labor laws moving forward, including properly paying employees for all hours worked, maintaining accurate records and refraining from retaliating against workers who exercise their rights.
“After being caught breaking the law, Rancho Chico and the Rodríguezes then shamelessly broke their promises that they would make things right and pay their employees the hard-earned wages and damages they’re owed,” said Regional Solicitor of Labor Marc Pilotin in San Francisco. “The Solicitor’s Office will pursue every option we have, including working with our colleagues in the Department of Justice, to hold employers accountable for violations of their obligations to their employees.”