🗞️ Promised to Pay, Then Didn't: Washington Restaurant Chain Faces $750K Federal Judgment for Wage Violations
A federal court ordered four Rancho Chico restaurants in Washington state to pay $750,000 to 42 workers after the owners agreed to settle wage violations and subsequently defaulted on that agreement.
A Washington state restaurant chain operating under the name Rancho Chico is now subject to a federal consent judgment after its owners failed to honor a commitment to compensate workers they had underpaid.
The U.S. Department of Labor's Wage and Hour Division investigated four locations in Spokane, Colville, and Omak, owned by Nolberto and Guillermina Rodríguez through two corporate entities, Blanco Inc. and Mi Rancho Chico Inc. Investigators found the restaurants had failed to pay the federally mandated overtime rate of one-and-a-half times the regular rate of pay for hours worked beyond 40 in a workweek. Some nonexempt employees were compensated on a flat salary basis, an arrangement that pushed their effective hourly earnings below the federal minimum wage of $7.25 per hour.
The investigation further determined that the Rodríguezes terminated a worker who had filed a wage complaint, a violation of anti-retaliation protections under the Fair Labor Standards Act. Separately, investigators cited the chain for violations of federal child labor laws, which prohibit minors from operating hazardous equipment.
Following the investigation, the owners agreed to pay back wages to the 42 affected employees but ultimately did not fulfill that obligation. The failure prompted the DOL's Office of the Solicitor, working in coordination with the U.S. Attorney's Office for the Eastern District of Washington, to seek a binding court order in the U.S. District Court for the Eastern District of Washington. The resulting consent judgment requires the Rodríguezes to pay $750,000 in back wages and damages and mandates ongoing compliance with federal labor law, including accurate recordkeeping and a prohibition on retaliating against workers who assert their legal rights.
Key Points
- Four Rancho Chico restaurant locations in Spokane, Colville, and Omak were found to have violated federal minimum wage and overtime laws
- 42 workers are owed a combined $750,000 in back wages and damages
- Owners initially agreed to pay following the investigation, then defaulted, triggering federal court intervention
- An employee who filed a wage complaint was unlawfully terminated in violation of federal anti-retaliation law
- Federal child labor violations were cited for allowing minors to operate hazardous equipment
- The consent judgment mandates future compliance, accurate recordkeeping, and prohibits retaliation against workers
Primary Source Author: U.S. Department of Labor, Wage and Hour Division
Primary Source: US DOL Press Release WHD20260615
