Too often, we hear about business owners mistreating employees, and it seems that the headlines are dominated by the food industry.

The U.S. Department of Labor reported recently that, after an investigation in Wisconsin, a federal court had recently ordered the operators of four Milwaukee-area chicken franchise restaurants to pay $442,140 in backpay to employees.

This week, the food industry made unfavorable headlines again and this time it was after an investigation in Minnesota.

Minnesota Restaurant Owners Guilty Of Underpaying Staff & Unlawful Termination

Boludo restaurants pride themselves on providing a "taste of Buenos Aires in Minneapolis" with a menu that features empanadas, pizza, ensalada, and postre. However, a recent investigation found that owners had violated labor laws.

According to the U.S. Department of Labor, the Boludo Minneapolis restaurants, who have shared ownership, will be forced to pay $105,784 in back wages, damages, and penalties to resolve violations identified by the department, including illegally firing an employee who cooperated with investigators.

The Wage and Hour Division found Boludo Holding Co. and its owners, Jerad Rassmussen, and Facundo Defraia, violated the Fair Labor Standards Act’s overtime provisions in several ways, depriving 51 employees of $44,915 in earned overtime wages at Boludo El 38, Boludo Downtown, Boludo Uptown, and Boludo Como. It also terminated one worker at its Uptown restaurant after they spoke with investigators.

Wage and Hour Division District Director Kristin Tout in Minneapolis says, "Retaliating against workers who engage in protected activities, such as cooperating with a federal investigation, is a blatant violation of the law that we will not tolerate". She adds that the department is committed to protecting workers against retaliation and ensuring they are paid fully for hours worked.

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In addition to owing $44,915 in back wages, the restaurant operators are also liable for an equal amount in liquidated damages, bringing the total recovery for the affected workers to $89,830. The division also assessed the restaurant group with an additional $15,954 in civil money penalties for child labor and tip retention violations.

In addition to paying back wages, damages, and penalties, Boludo will create a worksheet to process payroll that will have a weekly run to verify hours over 40 in a week, agreeing to pay overtime after 40 hours per week and abide by the Fair Labor Standards Act in the future.

The List Of Violations In This Investigation

Investigators with the U.S. Department of Labor's Wage and Hour Division found that the employers violated the Fair Labor Standards Act by doing the following:

  • Including managers and shift supervisors in a tip pool for servers and others who were allowed to receive tips, which invalidated the tip pool.
  • Not combining hours employees worked at more than one location, which denied employees overtime wages when they worked more than 40 hours in a workweek.
  • Allowing at least four workers to routinely use other names and identification numbers to clock in to avoid paying overtime.
  • Paying two employees straight-time rates for overtime hours, instead of time and one-half their regular rate of pay as required.
  • Not maintaining accurate employment records with employee start and stop dates and contact information and allowing individual workers to use others’ names to clock in.
  • Failing to distribute tips to workers or provide records showing that tips were paid to workers properly.
  • Allowed one 15-year-old to work outside permitted hours.

SEE NOW: Top 10 Businesses Now Generating The Most Revenue In Minnesota

This finding continues a troubling trend in the food industry. In fiscal year 2024, the Wage and Hour Division reportedly recovered more than $35 million in back wages for more than 27,500 food service industry workers nationwide.

In the past five years, the Wage and Hour Division in Minnesota found $2,459,002 in back wages due to 865 food service workers.

Custom-Built Modern Farmhouse Listing In Minnesota Will Blow Your Mind

The Northland has its fair of terrific homes that hit the market. They could be properties rich in history, lakefront properties, homes that offer tremendous views, the list goes on and on.

However, a 2015 custom-built modern farmhouse that recently went on the market in Cloquet may be the most stand-out home you'll see, but not just because of how it looks from the outside.

The 5,461-square-foot home sits on a 9-acre lot with 4 bedrooms and 3 baths and you'll likely do a double take when you drive by and want to look inside.

That would be a good idea because once you open the silo door there are a lot of cool things inside, including:

  • A show-stopping epoxy floor that encompasses over 8000 pennies
  • An expansive great room that boasts a wall of windows, allowing an unbelievable amount of natural light to flood this room
  • A chef-inspired kitchen featuring a hand-hammered copper farmhouse sink, slate tile floors, custom lighting, an island with storage, concrete countertops, custom cabinetry, and built-ins.
  • A primary bedroom with a very cool, industrial farmhouse-inspired bathroom with a jetted tub and separate shower. It also has access to a private patio.
  • A unique space on the third floor of the silo could make a perfect art studio, office, music room, or library.
  • A heated 36x28 3-car attached garage
  • Custom staircases, ailings, and throughout
  • A heated 36x28 3-car attached garage
Those are just a few highlights, you see it all for yourself below. The home, located at 4213 Van Gassler Road in Cloquet, went on the market in August for $899,900.

Gallery Credit: David Drew

The 15 Most Boring Cities In Minnesota

What makes a city boring? According to Road Snacks, how many people in a town are married, how many kids there are and the average age of the population.

Gallery Credit: Lauren Wells

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