Chipotle to pay New York workers $20 million as part of settlement

Chipotle restaurant in New York

Scott Mlyn | CNBC

New York Mayor Eric Adams and city officials announced Tuesday that Chipotle has agreed to pay about $20 million to about 13,000 workers for violating their right to predictable hours and paid sick leave. .

The mayor’s office said it was the largest fair workweek settlement in the United States and the largest worker protection settlement in New York City history. Chipotle will also pay $1 million in civil penalties, Adams’ office said.

The settlement is the result of a municipal investigation that was opened after 160 Chipotle employees and the 32BJ Service Employees International Union filed complaints against the company, according to the mayor’s office.

The investigation found that Chipotle failed to give employees their schedules 14 days in advance, forcing them to work overtime without prior written consent, and did not allow employees to use safety leave and illness, among other violations that overworked employees.

They involved violations of New York City’s Paid Sick and Safety Leave Act, which went into effect in 2014, and its Fair Work Week Act, which went into effect in November 2017.

The settlement states that anyone who worked in an hourly position for Chipotle in New York will receive $50 for each week worked between November 26, 2017 and April 30, 2022. Former Chipotle employees must file a claim to receive their payments, the mayor’s office said.

Chipotle restaurant manager Scott Boatwright said in a statement that the company is pleased to have resolved the issue.

“We have implemented a number of compliance initiatives, including additional management resources and the addition of new and improved timing technology, to help our restaurants and we look forward to continuing to promote the goals. predictable schedules and access to working hours for those who want them,” Boatwright said.

Read the New York City statement here.

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