Judge Forced a Washington Company Pay $750,000 to Cheated Workers

A federal court order is making sure 42 workers finally get paid what they were owed.

The U.S. Department of Labor secured a federal consent judgment requiring four Washington-based restaurants doing business as Rancho Chico to pay $750,000 in back wages and damages.

The locations spanned Spokane, Colville, and Omak, owned by Nolberto and Guillermina Rodríguez under Blanco Inc. and Mi Rancho Chico Inc.

The Investigation Found Serious Violations for the Rancho Chico Restaurant Chain

The Department of Labor’s Wage and Hour Division uncovered a serious pattern of violations, with Rancho Chico failing to pay required overtime, time and a half the regular rate, for hours worked over 40 in a workweek.

Some nonexempt employees were paid a salary for all hours worked, which resulted in their actual earnings falling below the federal minimum wage of $7.25 per hour.

Believe it or not, it got worse from there. Investigators found that Rancho Chico had unlawfully retaliated against an employee by terminating them after the employee filed a wage complaint. The investigation also uncovered violations of federal child labor laws, with minors being found operating hazardous equipment. For the record, that is strictly prohibited.

The Owners Promised to Pay, Then Did Not

After the initial investigation, the owners agreed to pay back the wages owed, but then did not follow through. That escalated the issue from an administrative resolution into a federal court case, pulling in the Department’s Office of the Solicitor and the U.S. Attorney’s Office for the Eastern District of Washington.

Under the consent judgment, the owners of Rancho Chico must pay the full $750,000 and comply with federal labor law going forward, properly pay their employees moving forward, maintain accurate records, and not retaliate against workers who exercise their legal rights.

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