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8/17/2011
KH Law
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Rico's Mexican Grill faces overtime pay lawsuits and claims for back taxes.

What do overtime laws and school taxes have in common? Rico's Mexican Grill can answer that - the company faces overtime pay lawsuits and claims for back taxes.

When our wage lawyers talk to people whose employer denied them overtime we check a company's history immediately. Some companies violate the wage and hour laws so flagrantly that it's surprising that they are still allowed to operate a business at all.

The slugging economy is definitely affecting business-owners, but that is no excuse to shortchange hard-working employees, or school kids for that matter. The case below is an example of certain companies that have no regard for the laws or the people they affect.

Rico's Mexican Grill restaurant chain in hot water for school taxes and overtime pay.

Rico's Mexican Grill is definitely on the hot plate this month as the news surfaces that the Woodlands-based Tex-Mex chain is facing double lawsuits:

  • around 30 former employees are filing overtime lawsuits against Rico's Mexican Grill for overtime pay, and
  • the Humble Independent School District filed suit against Rico's for unpaid school district taxes in 2008, 2009, and 2010 in the amount of $6,223.52, including interest and penalties.

Recently the company has also failed to pay rent at two of its locations. Rico's Mexican Grill, with eight locations in Texas, appears to be in the middle of a disappearing act:

  • In August, 2011, the locks on Rico's Mexican Grill in Atascocita were changed after the company failed to pay rent.
  • In July, 2011, the company cleared out its Casa Rico Shenandoah restaurant without notice after falling behind in rent.

The overtime lawsuit claims Rico's Restaurant did not pay overtime to employees and instead paid straight time for overtime hours. The suit is a collective action under the Fair Labor Standards Act which means other employees are allowed to become part of the suit.

If you are a restaurant employee paid tips, you need to double-check your paycheck: Order our free wage and overtime book to find out how you can recover up to 3 years of wages under the FLSA.

Rico's Mexican Grill operates several locations in Texas including: The Woodlands, Magnolia, Kingwood, Spring, Willis.


Restaurant employees: Find out what to do if you are cheated on your paycheck.
Video: What to do if your employer doesn't pay overtime.



Category: Tipped Employees



The Texas overtime lawyers at Kennedy Hodges represent workers nationwide and across Texas in:
Houston, Dallas, Austin, San Antonio, Fort Worth, Pasadena, Laredo, Sugar Land, Lubbock, Illinios, New York, Massachusetts, Los Angeles, Chicago, Philadelphia, Phoenix, San Diego, San Jose, Jacksonville, Indianapolis, San Francisco, Columbus, Charlotte, Detroit, and more.




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