Mankato, New Ulm, Redwood Falls Restaurant Owners Forced To Pay Back Wages

(Mankato, MN) – A Mankato restaurant owner will pay back wages to employees after an investigation by the U.S. Department of Labor that found they violated the Fair Labor Standards Act at four restaurants.

The owners of La Terraza Mexican Grill and bar will pay $831,232 to 113 previous and current employees. Le Terraza is owned by Janete Alvarez Campos and Leticia Salazar Rizo.  Campos also has part interest the three other restaurants that owe back wages: Plaza Garibaldi in Redwood Falls, Plaza Garibaldi Authentic Mexican Restaurant Inc. in New Ulm, and Las Palmas Mexican Restaurant in Mason City, IA.

Investigators say the restaurants required servers to kick back their hourly wage and work only for tips, and required employees to work on salary, regardless of the number of hours worked.  The practice resulted in multiple minimum wage and overtime violations.  The owners also deducted the cost of uniforms from server wage, and failed to keep proper payroll records.

Photo credit: Pixabay

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