NEW YORK — Chipotle Mexican Grill will pay current and former workers at its New York City restaurants $20 million for violating the city’s labor laws, Mayor Eric Adams announced Tuesday.
According to investigators, Chipotle violated the city’s Fair Workweek statute by not posting work schedules 14 days in advance, paying a premium for schedule changes, and offering available shifts to current employees before hiring new employees.
The settlement between the city and the California-based fast-food chain involves about 13,000 employees who worked at the chain’s New York City locations between 2017 and this year. This is the result of an investigation by the city’s Consumer and Workers Protection Agency into complaints filed by 160 Chipotle workers and the local 32BJ of the Service Employees International Union, city officials said.
“Today’s settlement with Chipotle is not only a victory for workers, securing up to $20 million in assistance for some 13,000 workers, but as the largest worker protections agreement in New York City history, it also sends a strong message that we don’t will tolerate when workers’ rights are violated,” Democrat Adams said in a statement.
Under the agreement, every hourly hourly worker at Chipotle in New York City is entitled to $50 for each week worked between November 26, 2017 and April 30, 2022. Chipotle is also paying the city $1 million in civil penalties.
“We are pleased to resolve these issues and believe this settlement demonstrates Chipotle’s commitment to providing opportunities for all of our team members while complying with the Fair Workweek Act,” said Scott Boatwright, Chipotle’s chief restaurant officer, in a statement Explanation.
Boatwright said the company has taken steps to improve compliance through measures such as improved time-tracking technology and looks forward to “further advancing the goals of predictable scheduling and access to working hours for those who so desire.”