Business

Chipotle to pay $20 million to NYC workers as part of settlement

Chipotle restaurant in New York City
Scott Mlyn | CNBC

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

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

The settlement is the result of a city investigation that was initiated 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 day in advance, requiring them to work extra time without advance written consent, and failed to allow employees to use accrued safe and sick leave, among other violations that overworked employees.

Those were violations 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.

The settlement stipulates that 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. Former Chipotle employees must file a claim to receive their payments, the mayor’s office said.

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,” Boatwright said.

Read the statement from the City of New York here.

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