US Department of Labor secures federal court order requiring 4 Washington-based restaurants to pay $750K in wages, damages to 42 workers

SPOKANE, WA - The U.S. Department of Labor 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 of the Fair Labor Standards Act.

Entered in the U.S. District Court for the Eastern District of Washington, the order comes after the department's Wage and Hour Division 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.

Investigators also found that Rancho Chico 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.

"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."

Under the consent judgment, Rancho Chico and the Rodríguezes must pay $750,000.00 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."

Employers and workers can call the division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). Employers are encouraged to use the agency's industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division. The agency's PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the FLSA, as well as certain potential violations under the Family and Medical Leave Act.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Download the agency's free timesheet app for iOS and Android devices to track hours and pay.