Four Washington Restaurants Must Pay $750K in Wages, Damages to Workers

Four Washington-based restaurants must 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.

The U.S. Department of Labor secured a federal consent judgment requiring the payment. 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.

Rancho Chico reportedly 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, an investigation found Rancho Chico engaged in retaliation after terminating an employee who filed a wage complaint. Investigators also found that Rancho Chico violated federal child labor laws that prohibit minors from operating hazardous equipment.

The Rodríguezes agreed to pay back wages to the 42 employees but ultimately failed to pay the amounts owed, which led to a federal court order to compel payment of the back wages and damages.

The judgment requires Rancho Chico and the Rodríguezes to 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.