New York City Mayor Eric Adams and New York City Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga announced a settlement with Chipotle Mexican Grill.
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That is to deliver up to approximately $20 million in compensation to approximately 13,000 workers who experienced violations of their right to predictable schedules and paid sick leave under the Fair Workweek and Paid Safe and Sick Leave laws.
Chipotle will also pay $1 million in civil penalties.
The agreement is the result of DCWP's multiyear investigation into complaints filed by 160 Chipotle employees and by 32BJ SEIU. DCWP's investigation found major violations of laws that affected all Chipotle employees in New York City.
The settlement with Chipotle is the largest fair workweek settlement nationwide and the largest worker protection settlement in New York City history.
Under the agreement, anyone who worked for Chipotle in an hourly position in New York City will receive $50 for each week worked from November 26, 2017 to April 30, 2022. For example, an employee who worked for Chipotle continuously for a year and a half (78 weeks) will receive $3,900. Employees who were employed with Chipotle on April 30, 2022 will receive a check in the mail along with a letter explaining how their amount was calculated.
Former Chipotle employees must file a claim to receive a payment. Former employees, whose employment ended before April 30, 2022, will receive a notice by mail, email, and text message with information about how much money they will receive, how the amount was calculated, and how to file a claim online or by mail.
In 2018, DCWP initiated an investigation into Chipotle's compliance with the Fair Workweek and the Paid Safe and Sick Leave laws at locations in Brooklyn after receiving complaints from fast food employees. In 2019, following the investigation, DCWP filed a case against Chipotle at the Office of Administrative Trials and Hearings for violating the Fair Workweek Law at these locations.
In April 2021, after uncovering significant new information about violations across New York City, DCWP expanded the case against Chipotle to include locations citywide.
DCWP's investigation found violations of the Fair Workweek and Paid Safe and Sick Leave laws. Among other violations, DCWP found that Chipotle violated the laws by:
Failing to give employees their work schedules 14 days in advance;
Requiring employees to work extra time without their advance written consent;
Failing to pay premium pay for schedule changes;
Requiring employees to work "clopening" shifts (when workers work the closing shift one day and the opening shift the very next day with less than 11 hours in between) without paying the required $100 premium;
Failing to offer available shifts to current employees before hiring new employees; and
Failing to allow employees to use accrued safe and sick leave.. ■