The guac may cost extra, but for Chipotle, paying employees what they’re entitled to also costs extra.
Chipotle becomes ordered to pay $20 million in a workers’ rights settlement that affected an estimated 13,000 former and current employees of the fast-casual chain.
Anyone who worked for Chipotle from November 2017 to April 2022 is eligible to receive a check for $50 for each week they worked during that period. The Washington Post reported that the settlement agreement is the “largest of its kind in the United States”.
Employees still with the company will receive a check in the mail along with a letter explaining how their payout was calculated, while those who have since left the company will have to file claims to receive their money.
The lawsuit alleged that Chipotle violated the Fair Workweek Law and the City of New York City’s Paid Safe and Sick Leave Law by limiting employees to 24 hours of paid sick leave and failing to notify employees in advance of roster or shift changes.
The investigation also found that Chipotle did not offer any additional shifts or overtime to employees before hiring new ones and that employees were required to work overtime without their consent or prior notice.
Employers are also required by law to pay a premium if an employee is asked to work shifts with less than 11 hours of rest, something Chipotle avoided by creating false waiver documents.
The first investigation was launched in 2018 after the city received 160 complaints from Chipotle employees in Brooklyn.
“Today’s settlement with Chipotle is not only a workers’ victory by securing up to $20 million in aid for approximately 13,000 workers, but also sends a strong signal, as the largest workers’ protection settlement in New York City history, that we will not stand up to when workers’ rights are violated,” New York City Mayor Eric Adams said in a statement release. “I thank 32BJ SEIU for helping to track down these violations and the Department of Consumer and Worker Protection for bringing justice to these workers.”
londonbusinessblog.com reached out to Chipotle for comment.
chipotle is get off a disappointing second quarter of 2022 after nationwide price increases hit the chain’s menu in an effort to offset inflation costs and drive down sales.
The chain also revealed that it plans to push through more price hikes this month “in mid-to-high single digits.”
chipotle was down about 11% in a period of a year from Wednesday late afternoon.