Chipotle to pay $20 million to New York City workers for violating Labor laws

Mayor Eric Adams announced Tuesday that Chipotle Mexican Grill will pay $20 million to current and former workers at its New York City restaurants for violating city labor laws.

According to investigators, Chipotle s violations of the city's Fair Workweek law included failing to post work schedules 14 days in advance, paying a premium for schedule changes and offer available shifts to current employees before hiring new employees.

The settlement between the city and the California-based fast-food chain covers about 13,000 employees who worked at the chain's New York City outlets between 2017 and this year. It was the result of an investigation by the city s Department of Consumer and Worker Protection into complaints filed by 160 Chipotle workers and Local 32 BJ of the Service Employees International Union, city officials said.

The 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 settlement in New York City history, that we won't stand by when workers rights are violated, Adams, a Democrat, said in a statement.

Any hourly New York City Chipotle worker can receive $50 for every week worked between November 26, 2017 and April 30, 2022, according to the agreement. Chipotle will pay $1 million in civil penalties to the city.

Chipotle's chief restaurant officer, Scott Boatwright, said in a statement that they are pleased to be able to resolve these issues and believe that this settlement shows Chipotle's commitment to providing opportunities for all team members while also complying with Fair Workweek law.

Boatwright said the company has taken measures to improve compliance through measures such as improved time-keeping technology, and looks forward to continuing to promote the goals of predictable scheduling and access to work hours for those who want them.