Yen Meier had been charged with human trafficking and benefiting from human trafficking; accused of forcing an employee to work long hours at her restaurant, with no pay and little food.
A trial had been scheduled for Monday.
But in the notice to the court, prosecutors said they needed more time.
"The state is engaging in further investigation into the matter. This investigation is ongoing and involves obtaining possible evidence from federal and foreign sources. The state further reviewed discovery received from the defense, including on March 3, 2014, and wishes to conduct follow-up into that evidence and other evidence received from the defendant before proceeding with criminal charges against the defendant," said the motion to dismiss by assistant District Attorney Andrew Maier.
"Dismissing the charges is the ethical thing to do in this case," said defense attorney Nila Robinson.
Meier is the owner of Yen's Chinese Buffet.