Chipotle Agrees to Pay Over $20 Million to Settle New York City Workplace Case

New York City announced Tuesday that it has reached a settlement worth more than $20 million with fast food chain Chipotle Mexican Grill over violations of its labor protection laws.

The measure, which affects about 13,000 workers, sends a message that “we will not stand by when workers’ rights are violated,” Mayor Eric Adams said in a statement.

The settlement covered scheduling and sick leave law violations from late November 2017 through late April of this year, according to the city. Under the settlement, Chipotle’s hourly employees in New York City will receive $50 for each week worked during the term. Employees who terminated before April 30th must file a claim to receive compensation.

of fair work week law The law, enacted by the city in 2017, requires fast food employers to provide workers with schedules at least two weeks in advance or pay bonuses for shifts.

Employers must also provide workers with at least 11 hours of vacation time between shifts on consecutive days or obtain written consent and pay an additional $100. Employers should also offer employees more shifts before hiring additional employees to make it easier for them to earn a sustainable income.

under another city ​​lawlarge employers like Chipotle are required to provide up to 56 hours of paid sick leave per year.

The city accused Chipotle of violating all of these policies.

Scott Boatwright, the company’s chief restaurant officer, said in a statement: “We are pleased to have resolved these issues. He added that he has been making changes to the people who want them.”

The city filed its first legal complaint in September 2019 in a lawsuit involving a small number of Chipotle stores, then expanded the lawsuit last year to include locations around the city. At the time, the city said the company owed workers more than $150 million just for schedule violations. Workers’ advocates said civil penalties could well exceed that amount.

In addition to $20 million in damages, Chipotle will pay $1 million in civil penalties. A city spokeswoman said a settlement is the fastest way to win relief for workers.

In a statement, the city said it had completed more than 220 investigations and received about $3.4 million in fines and restitution under the Scheduling Act, had completed more than 2,300 investigations, and lost about 17 million people while on sick leave. He said he got a dollar fine and a refund. law. Neither figure includes the settlement announced Tuesday.

A city spokeswoman said the city had filed more than 135 formal complaints under two statutes, and many employers had settled before the city filed lawsuits.

Chipotle faces pressure on other aspects of its labor practices. His 32BJ, local to the International Union of Service Workers, who filed the first complaint in the incident and helped expedite the investigation in Chipotle, seeks to unionize Chipotle workers in the city.

Chipotle employees at stores in Maine and Michigan have filed petitions for union elections. Stores in Maine have closed, which employees say is retaliation for their efforts to organize. Chipotle said the closure was the result of staffing issues and “has nothing to do with union activity.”