A chain of Mexican restaurants has agreed to pay $3.75 million to settle a class action lawsuit that accused it of underpaying and overworking its employees for seven years.
The settlement, which awaits formal approval by a federal judge, requires Los Dos Potrillos to write checks to 1,350 people who worked in its restaurants from 2017 to 2024. The workers will split $2.1 million, with the remainder going to their attorneys and other costs. Payouts, which are based on the employees’ hours worked and salaries, range from $25,677 to $65.
“We’re pleased that we got a good settlement for these folks,” said lawyer Brandt Milstein.
Jose Ramirez started the first Los Dos Potrillos in Centennial in 2002 and later expanded to four other south metro cities. In 2019, he handed the reins to his sons, Daniel and Luis Ramirez, who opened Denver’s first Los Dos this month near Interstate 25 and Colorado Boulevard.
In early 2023, former Los Dos server Gladis Castañeda sued the company and its owners, accusing them of not paying minimum wage or overtime, of splitting tips and not providing rest breaks. The lawsuit later became a class action for Los Dos hourly workers going back seven years. Jose, Daniel and Luis Ramirez were defendants in the wage theft case.
“While we are limited in what we can share due to the ongoing legal process, we remain committed to our core values: respect, integrity, safety, and excellence in all we do,” their Ramirez Hospitality Group said in an emailed statement to BusinessDen this week. “Our 70 percent employee retention rate demonstrates our commitment to our team.”
The settlement between Los Dos and its former workers came together over months, involved two formal mediation sessions and several informal talks, according to Milstein.
“This was a contested negotiation and contentious at times,” he told U.S. District Judge Daniel Domenico during a hearing on whether to approve the settlement Tuesday.
The deal is “more valuable than protracted litigation” for his clients, the attorney explained.
Christian Gunneson, an attorney for Los Dos, chimed in several times during the hearing to note that the claims of wage theft against his clients are only unproven allegations.
Gunneson is a Florida attorney with Freeman Mathis & Gary, a national law firm. The workers’ attorneys, Milstein and Andrew Turner, are with Milstein Turner in Boulder.
Story via BusinessDen.