New York City Mayor Eric Adams and city officials said on Tuesday that restaurant chain Chipotle Mexican Grill, Inc. (CMG) has agreed to pay around $20 million to nearly 13,000 workers for violating their right to predictable schedules and paid sick leave.
The mayor's office said that this is the largest fair workweek settlement in the United States and the largest worker protection settlement in the history of New York City. The company will also pay $1 million in civil penalties, Adams' office said.
The settlement is the result of a city investigation, which was started after 160 Chipotle employees and the 32BJ Service Employees International Union filed complaints against the company.
The investigation revealed that Chipotle did not give employees their schedules 14 day in advance, requiring them to work extra time without advance written consent, and did not allow them to use accrued safe and sick leave. This were some of the major violations against the employees.
Other violations included that of New York City's Paid Safe and Sick Leave Law, which went into effect in 2014, and its Fair Workweek Law, which went into effect in November 2017.
As per the settlement, anyone who worked in an hourly position for Chipotle in New York City will receive $50 for each week worked between November 26, 2017 and April 30, 2022. The mayor's office added that former Chipotle employees must file a claim to receive their payments.
Scott Boatwright, Chipotle's chief restaurant officer, said in a statement that the company is pleased to have resolved the matter.
"We have implemented a number of compliance initiatives, including additional management resources and adding new and improved time keeping technology, to help our restaurants and we look forward to continuing to promote the goals of predictable scheduling and access to work hours for those who want them," he said.
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