New York City said on Tuesday it had reached a potentially more than $20 million settlement with fast-food chain Chipotle Mexican Grill for violating worker protection laws, the settlement said. largest of its kind in the city’s history.
The action, which affects about 13,000 workers, sends a message “that we will not stand by when workers’ rights are violated,” Mayor Eric Adams said in a statement.
The city said the settlement included violations of schedule and sick leave laws from late November 2017 to late April this year. Under the agreement, Chipotle hourly employees in New York City would receive $50 for each week they worked during that time. Employees who have left the company before April 30 will have to file a claim for compensation.
The Fair work week law enacted by the city in 2017 that requires fast food employers to give workers their schedules at least two weeks in advance or pay bonuses for shifts.
Employers must also give workers at least 11 hours of rest between shifts on consecutive days or otherwise agree in writing and pay them an additional $100. And employers must give workers overtime before hiring more employees, to make it easier for them to earn a sustainable income.
According to a separation city lawLarge employers like Chipotle must provide up to 56 hours of paid sick leave per year.
The city accused Chipotle of violating all of these policies.
“We are delighted to be able to address these issues,” Scott Boatwright, the company’s restaurant director, said in a statement. Mr Boatwright added that the company has made a number of changes to ensure compliance with the law, such as new timekeeping technology, and Chipotle looks forward to “continuing to advance the goals of possible scheduling. Anticipate and access business hours for those who want them. “
The city that applied original legal claim In case, in connection with certain Chipotle stores, in September 2019, then expand the case last year to include locations across the city. At the time, the city said the company owed workers more than $150 million simply because of a schedule violation. Advocates for workers say civil penalties can go well beyond that amount.
In addition to the $20 million in damages, Chipotle will have to pay $1 million in civil penalties. A city spokesman said the settlement was the fastest way to win worker relief.
The city said in its statement that it has closed more than 220 investigations and collected nearly $3.4 million in fines and restitution under the scheduling law, and that it has closed more than 2,300 investigations and collected received nearly $17 million in fines and sick leave compensation. law. None of the numbers include the deal announced Tuesday.
A city spokesperson said the city has filed more than 135 formal complaints under the two laws, and many have been resolved by employers before the city can file lawsuits.
Chipotle faced pressure on its labor performance on other fronts. Local 32BJ of the Service Employees International Union, which helped advance the investigation in Chipotle by filing an initial complaint in the case, is seeking to unite Chipotle workers in the city.
Chipotle employees at stores in Maine and Michigan filed a request for union elections. The Maine store was closed, a move that employees confirm is revenge for organizational effort. Chipotle has said the closures were due to staffing issues and “had nothing to do with union activity.”
