Minnesota Man Sues Fargo Restaurant Over Racial Harassment and Wage Theft
A Minnesota man has filed a civil lawsuit against a Fargo restaurant, alleging a pattern of racial harassment, systemic wage theft, and professional retaliation. The complaint, filed on April 2 in Cass County District Court, names Taste of Philly Development Company, Inc. As the defendant.
- Wage Theft: Allegations of 1,016 unpaid overtime hours due to employee misclassification.
- Racial Harassment: Claims of a supervisor using racial slurs, including the N-word and “boy.”
- Retaliation: Allegations of heightened scrutiny after the employee raised pay and condition concerns.
- Legal Action: The plaintiff is seeking unpaid wages, damages for emotional distress, and a jury trial.
Allegations of Wage Theft and Misclassification
The plaintiff, Korey Lee Peterson, worked at the restaurant for less than a year. According to his attorney, Bruce Ringstrom of Ringstrom DeKrey PLLP, Peterson was misclassified as a salaried, overtime-exempt employee. However, his actual day-to-day duties were primarily non-exempt tasks under federal and state labor laws, such as:
- Food preparation
- Cashiering
- Cleaning
- Inventory management
The lawsuit claims that this misclassification resulted in Peterson working approximately 1,016 overtime hours for which he received no compensation. Ringstrom noted that Peterson’s role functioned more like an hourly employee than a manager.
Racial Harassment and Hostile Work Environment
Beyond financial disputes, the lawsuit alleges a hostile work environment characterized by racial harassment. The complaint states that a supervisor repeatedly used racial slurs, specifically the N-word and the word “boy,” in the workplace.
While an initial investigation by the North Dakota Department of Human Rights did not prove these claims, Ringstrom asserts that fresh evidence has emerged. The legal team now possesses notarized statements from former employees who substantiate that these derogatory terms were used against Peterson within the store and witnessed by others.
Retaliation and Legal Claims
Peterson alleges that once he raised concerns regarding his working conditions and pay, the restaurant’s management retaliated against him. This retaliation reportedly manifested as extreme scrutiny, where Peterson felt he could not perform tasks without a supervisor appearing to point out mistakes.
Legal Counts and Requested Relief
The civil complaint includes four primary counts:
- Unpaid overtime and misclassification under the Fair Labor Standards Act.
- Unpaid final wages, accrued paid time off, and mileage reimbursement under North Dakota law.
- Race discrimination and a hostile work environment under the North Dakota Human Rights Act and Title VII of the Civil Rights Act of 1964.
- Retaliation.
Peterson is seeking statutory penalties, attorney’s fees, liquidated damages, unpaid wages, and compensatory damages for emotional distress. He has also requested a jury trial.
Current Status
As of April 14, 2026, Taste of Philly has not yet responded to the lawsuit in court records.
Frequently Asked Questions
What is employee misclassification?
Employee misclassification occurs when an employer incorrectly labels a worker as “exempt” (salaried) to avoid paying overtime, even though the worker’s actual job duties are “non-exempt” (hourly) under labor laws like the Fair Labor Standards Act.
What is the current status of the harassment evidence?
Although the North Dakota Department of Human Rights previously could not prove the claims, the plaintiff’s attorney states they now have notarized statements from previous employees that substantiate the racial harassment.
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