Chipotle restaurants in New York City
Scott Millin | CNBC
New York City Mayor Eric Adams and city officials announced Tuesday that Chipotle has agreed to pay approximately $20 million to nearly 13,000 workers for violating their right to an estimated schedule and paid sick leave . .
The mayor’s office said it was the largest fair workweek rule in the United States and the largest worker protection rule in New York City history. Adams’ office said Chipotle would also pay $1 million in civil penalties.
The settlement comes as a result of a city investigation launched 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 14 days’ notice of their schedule, caused them to work overtime without prior written consent, and overworked employees by using earned protective leave and sick leave, among other violations. Allow failed.
They violated New York’s Paid Safety and Sick Leave Act, which went into effect in 2014, and the Fair Workweek Act, which went into effect in November 2017.
The agreement provides that anyone who has worked an hourly position for Chipotle in New York City will receive $50 for each week worked between November 26, 2017 and April 30, 2022. Former Chipotle employees must file an application to receive their payment, the mayor’s office said.
Chipotle’s chief restaurant officer, Scott Boatwright, said in a statement that the company is pleased to have the matter resolved.
“We have implemented a number of compliance initiatives, including adding additional managerial resources and new and improved time tracking technology, to help our restaurants and those we serve further the goals of predictable scheduling and access to work hours. Look forward to those who want them,” Boatwright said.
Read the New York City statement here.