MINNEAPOLIS – The U.S. Labor Department fined the owners of Rancho Loco Mexican grill restaurants in Cannon Falls and Red Wing for skirting the law sand cheating their employees. Ramon Ruelas, Jorge Arcos, Nancy Arcos and Medardo Arcos of Rochester were told to pay $436,000 in backpay and unpaid overtime. The owners also operate the Los Arcos Cantina near the Rochester airport, but that establishment was not included in the case. The case involved 36 cooks, dishwashers, servers and other employees who were misclassified illegally as independent contractors to their disadvantage. They were paid for 30 hours weekly but were told to arrive for prep work but not to post their time cards until the first customer arrived.
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Kristin Tout, assistant district director for the U.S. Wage and Hour Division in Minneapolis: “Restaurant employees are among the nation’s lowest paid essential workers, and they are often unaware of their rights to minimum wage and overtime. The U.S. Department of Labor is committed to using every enforcement tool available, including litigation, to ensure they are paid every penny they have legally earned for their hard work.”
Rancho Loco. Owners of Mexican restaurants and bars in Cannon Falls and Red Wing accused of deceit and exploitation.
