Home » US business news » Chipotle reaches $20 million settlement over violation of worker’s laws – the biggest in the city’s history

Chipotle reaches $20 million settlement over violation of worker’s laws – the biggest in the city’s history

By Hugh Fort in US business news, posted August 14, 2022

Mexican food giant Chipotle has agreed a $20 million settlement in New York over violations of worker protection laws.

The New York Times reports the settlement is the largest in the city's history and is over the treatment of around 13,000 workers.

Mayor Eric Adams said the case meant "we won’t stand by when workers’ rights are violated."

New York City said the settlement covered violations of scheduling and sick leave laws from November 2017 to April this year.

Under the settlement, Chipotle will pay each member of staff in New York City $50 for each week they worked during that period.

Anyone who has left the company before April 20 this year will have to file a claim for their compensation.

The violations are of the Fair Workweek Laws enacted by the city in 2017.

The legislation requires fast-food employers to provide their staff with schedules at least two weeks in advance or pay a bonus for the shifts.

Employers must also give workers at least 11 hours off between shifts on consecutive days or get written consent and pay them an extra $100.

Companies must also offer workers more shifts before hiring extra staff to make it easier for them to earn a proper wage.

Another city law requires large employers like Chipotle to provide up to 56 hours of paid sick leave a year.

Scott Boatwright, the company’s chief restaurant officer, said in a statement: “We’re pleased to be able to resolve these issues.

He added the company had carried out a number of changes to ensure compliance with the law, such as new time-keeping technology, and that Chipotle looked forward to “continuing to promote the goals of predictable scheduling and access to work hours for those who want them.”

Chipoptle will also pay $1 million in civil penalties.

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A spokeswoman said the city had filed more than 135 formal complaints under the two laws, and that many employers settle before the city can file a case.

Chipotle faces pressure over its labor practice on other fronts.

Local 32BJ of the Service Employees International Union, which helped prompt the investigation at Chipotle by filing initial complaints in the case, is seeking to unionize Chipotle workers in the city.

Chipotle employees at stores in Maine and Michigan have filed petitions for union elections. The Maine store has been closed, a move that the employees say was retaliation for the organizing effort.

Chipotle has said the closing was a result of staffing issues and had “nothing to do with union activity.”

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