A default judgment treats as admitted that Lone Spur Cafe Queen Creek (a cowboy themed hamburger restaurant) threatened and fired four employees for raising workplace concerns. The restaurant’s lawyer now says it’s since closed and can’t comply with the law.
Labor / Default JudgmentTL;DR
- In September 2021, three employees at a Queen Creek, Arizona restaurant raised concerns that included unsafe working conditions and stopped work. Managers threatened to fire them, and all three were fired within days. In June 2022 a fourth employee who raised problems with missing and misdirected paychecks was fired.
- The employer settled with the National Labor Relations Board in January 2024, then didn’t carry out the settlement. In February 2026 its lawyer said the business had ceased operations.
- Under the settlement’s own terms, that breach made every allegation count as admitted. The Board found the employer violated federal labor law.
- The Board ordered back pay and front pay to three of the four workers (amounts aren’t stated in the decision), neutral job references for all four, removal of one worker’s discharge record, and a rights notice mailed to every employee since June 15, 2022.
- Unresolved: whether anyone will actually pay, and whether any related entity can be held responsible.
The case shows how a workplace complaint can end in a firing within a day or two, and how long a remedy can take to arrive: just over five years here, with payment still unconfirmed.
Transparency Notice
This article relies on the National Labor Relations Board’s decision in Lone Spur Cafe Queen Creek LLC, 375 NLRB No. 51, which the Board itself marks as subject to formal revision. The allegations originate with the Board’s General Counsel (the official who prosecutes cases) and the workers who filed charges.
The Facts
Lone Spur Cafe Queen Creek LLC ran a restaurant and bar in Queen Creek, Arizona. On September 25, 2021, according to allegations now deemed admitted, general manager Ryan Whitehead phoned employees who were protesting unsafe working conditions with a work stoppage and threatened to fire them. By September 27, three of those employees were gone. Less than nine months later, a fourth employee who had raised the problem of missing paychecks was fired too.
The National Labor Relations Board is the federal agency that enforces private-sector workers’ right to act together over pay and working conditions. On September 30, 2026, it granted a default judgment against the company and ordered it to make the workers whole.
The Board treated the company as an employer covered by the law based on two facts in the record: annual gross revenue above $500,000, and annual purchases above $5,000 from outside Arizona.
What the Employer Is Deemed to Have Done
The conduct begins with a rule. In early August 2021, Whitehead sent employees an electronic message requiring them to discuss issues with management “in a professional manner.” The Board’s findings call that directive overly broad and say it was issued in response to employees’ protected group activity. Elsewhere, the Board’s notice describes the problem more bluntly: telling workers they may express their feelings only if they aren’t being insubordinate.
Then came the stoppage. The four discharges, and the threats and penalties around them, are laid out below.
Whitehead sends the “professional manner” directive.
Employees Michael Houtz, Karen Houtz and Jennifer Standage begin raising concerns, including unsafe conditions, and stop work. Whitehead threatens by phone to fire them.
Whitehead and Regional Manager Ben Christy repeat the threat in person. Standage is fired.
Christy makes two more threats by phone. Michael and Karen Houtz are fired.
Employee Jon Kyle Taulton raises pay problems with coworkers and the company.
Assistant General Manager Michael Boughner threatens discharge and unspecified reprisals, calling the activity insubordination. Taulton is fired.
| Employee | Activity | Discharged | Further treatment and remedy |
|---|---|---|---|
| Jennifer Standage | Raised concerns and joined work stoppage, Sept. 25 to 27, 2021 | Sept. 26, 2021 | Neutral references. Zero back pay designated in the settlement. |
| Karen Houtz | Same | Sept. 27, 2021 | Not reimbursed for supplies bought to do cook work; refused her termination date for an unemployment application. Settlement pay and neutral references ordered. |
| Michael Houtz | Same | Sept. 27, 2021 | Banned from the restaurant. Settlement pay and neutral references ordered. |
| Jon Kyle Taulton | Raised missing and misdirected pay, June 13 to 15, 2022 | June 15, 2022 | Settlement pay, neutral references, and removal of the discharge from company files. |
The complaint also says each of these actions was taken because the employees acted together, and to discourage others from doing the same. That motive is part of what the default made admitted, not something a court tested.
Who Bore the Consequences
4 people lost their jobs at this scamming ass restaurant. Standage was fired one day after the first threat; the Houtzes two days after it; Taulton on the same day Boughner confronted him, two days after his complaints began. The decision gives those intervals, and little else about their lives afterward. It doesn’t describe hardship, how long anyone went without work, or what the unsafe conditions were.
Some consequences are concrete. Karen Houtz was left out of pocket for supplies she bought to do her job, and was refused the date of her termination “for use in applying for unemployment benefits.” Michael Houtz was barred from the restaurant. The decision doesn’t state the amount of the unreimbursed supplies.
Taulton’s complaint concerned pay itself: employees “not receiving their pay or having their pay directly deposited into their bank accounts.” The decision doesn’t say how many coworkers were affected or how long it lasted. It also supports no finding about wider effects on the community or labor market, and this article draws none.
“The only issue that the Charged Party may raise before the Board will be whether it defaulted on the terms of this Settlement Agreement.”
Michael Houtz files a charge and two amendments (the last on January 21, 2022). Taulton files his charge on July 15, 2022.
The Board’s Regional Director issues a consolidated complaint.
Settlement approved.
The Region emails the settlement packet with a March 19 compliance deadline. No response arrives. A compliance officer follows up on March 21.
The Regional Director gives the company 14 days to comply or face a reissued complaint.
The Region tries again. The company’s lawyer replies that it has ceased operations and can’t comply.
The Region asks for information about the claimed inability to comply. On April 3 it says it lacks the documents needed to assess that claim or the liability of “any related entity.”
The Region issues a complaint for breach of the settlement and moves for default judgment. The Board orders the company to show cause why the motion shouldn’t be granted.
The Board grants the motion. The company filed no response to it.
The decision records no steps between September 2024 and February 2026. The company’s only documented position is its lawyer’s one-line statement about closing. The Board treated the Region’s motion as undisputed because nobody answered it.
| Ordered | Not ordered, per the decision |
|---|---|
| Payment of settlement amounts (front pay, back pay, interest, excess tax) to Karen Houtz, Michael Houtz and Taulton within 14 days | A “full remedy,” because the General Counsel didn’t request one |
| Neutral references for all four workers | Email distribution of the notice, or outplacement services (not sought) |
| Removal of Taulton’s discharge from company files, with written notice to him | Record removal for the other three (omitted from the settlement); a remedy for the handbook violations, given the facility’s closure |
| Mailing the rights notice to everyone employed at the restaurant since June 15, 2022; W-2 forms by January 30, 2027; compliance reports to the Region | Specific dollar amounts, which the decision never states |
The order is directed to the company, “its officers, agents, successors, and assigns.” The settlement also allows a federal appeals court to enter a judgment enforcing the Board’s order without the company present.
“we find that all the allegations of the Consolidated Complaint are admitted as true.”375 NLRB No. 51, Ruling on Motion for Default Judgment
“The Respondent did not file a response. The allegations in the motion are therefore undisputed.”375 NLRB No. 51, procedural background
The source document for this investigation is attached below.
like i said at the beginning of this article that you’ve just read, but this wage stealing ass restaurant is no longer in service. According to Google Maps, there is a new restaurant where it once was. Hopefully it’s treating their workers better!
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