Chipotle Mexican Grill will pay $20 million in compensation to 13,000 workers in New York: “historic agreement” celebrates Mayor Adams

Chipotle has more than 2,000 locations in and outside the US.

Photo: Michael M. Santiago/Getty Images

Chipotle Mexican Grill, a California restaurant chain with headquarters in and outside the US, will pay $20 million to some 13,000 current and former workers in New York City for violating local labor laws, Mayor Eric Adams announced yesterday.

The millionaire lawsuit had been filed in April 2021 for him New York City Department of Consumer and Worker Protection (DCWP), alleging that the employees were owed more than $150 million in compensation for labor law violations.

According to investigators, Chipotle’s violations of the NYC Fair Workweek Law included not posting work schedules 14 days in advance, not paying a premium for schedule changes and not offering available shifts to current employees before hiring new ones.

That law was designed in part to prevent businesses from forcing employees to work late and then bringing them back early the next morning, known as “clopening” (closing and opening), bounded NBCNews.

The pact between the city and the Mexican fast food chain covers some 13,000 employees who worked at the chain’s outlets in New York City between 2017 and this year. The complaints were originally filed by 160 Chipotle workers and Local 32BJ of the Service Employees International Union, city officials said.

Under the agreement, any New York City Chipotle hourly worker is eligible to receive $50 for each week worked between November 26, 2017 and April 30, 2022. Chipotle will also pay $1 million in civil penalties to the citynarrowed FoxNews.

“Today’s settlement with Chipotle is not only a victory for workers by securing up to $20 million in relief for approximately 13,000 workers, but it also sends a strong message, as the largest worker protection agreement in New York City history, that we will not tolerate when workers’ rights are violated,” Democratic Mayor Adams said in a statement.

Scott Boatwright, director of the Chipotle chain, said in a statement that the company has taken steps to improve compliance with labor laws and hopes to “continue to promote the goals of predictable scheduling and access to work hours for those who want them.”