Chipotle to pay $20 million to New York City workers for violating labor laws
New York — Mayor Eric Adams announced Tuesday that Chipotle Mexican Grill Company will pay $20 million to current and former workers at its New York City restaurants for violating the city’s labor laws.
According to investigators, Chipotle’s violations of the city’s Fair Work Week law included failing to publish work schedules 14 days in advance, paying a premium for schedule changes and offering shifts available to existing employees before hiring new employees.
The settlement between the city and the California-based fast food chain covers about 13,000 employees who worked at the New York City restaurant chain’s outlets between 2017 and this year. City officials said it was the result of an investigation by the city’s Department of Consumer and Workers Protection into complaints from 160 Chipotle workers and local 32BJ from Service Employees International.
“The current settlement with Chipotle is not only a victory for workers by securing up to $20 million in relief for nearly 13,000 workers, but it also sends a powerful message, as the largest worker protection settlement in New York City history, that we will not be able to afford it,” Democrat Adams said in a statement. When workers’ rights are violated.
Under the agreement, any New York City Chipotle hourly worker is entitled to $50 for each week worked between November 26, 2017 and April 30, 2022. Chipotle will also pay $1 million in civil fines to the city.
“We are delighted to be able to resolve these issues and believe this settlement demonstrates Chipotle’s commitment to providing opportunity to all members of our team while also complying with the Fair Work Week Act,” Scott Powright, chief operating officer of Chipotle Restaurant, said in a statement.
Boatwright said the company has taken steps to improve compliance through measures such as improving time-keeping technology, and is looking to “continue to promote predictable scheduling goals and access to working hours for those who want it.”