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DOL Sues Restaurant for Classifying Kitchen Staff as Contractors

May 7, 2021, 6:22 PM

The U.S. Labor Department is accusing a Minnesota restaurant group of illegally classifying cooks and a dishwasher as independent contractors, part of a federal lawsuit that underscores the agency’s focus on employee status.

Ramejo, LLC, which operates Rancho Loco Mexican Grill & Bar in Cannon Falls, Minn., failed to pay the kitchen staff the federal minimum hourly wage of $7.25 and time-and-a-half overtime when they worked more than 40 hours per week, DOL alleged in the U.S. District Court for the District of Minnesota. The workers were treated as independent contractors, who aren’t eligible for federal wage protections, when in ...

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