Chipotle Reportedly Facing $150 Million Lawsuit Over Employee Scheduling

 Chipotle Reportedly Facing $150 Million Lawsuit Over Employee Scheduling

Topline

New York City filed a lawsuit Wednesday against Chipotle Mexican Grill over how it handles employee schedules, according to the New York Times, which reports that Chipotle is accused of hundreds of thousands of violations of a city law dictating fair practices.

Key Facts

The complaint alleges Chipotle broke New York’s “Fair Workweek Law” by changing employees’ working hours without sufficient notice, not approving appropriate time off or additional play and other workweek scheduling-related violations, according to the newspaper.

The city said Chipotle violated the law hundreds of thousands of times at dozens of New York City locations over roughly two year period between 2017 and 2019.

Chipotle is also accused of violating the city’s 2014 sick leave law, which requires employers to offer up to 40 hours of paid sick leave, according to the New York Times.

The city is seeking $150 million to distribute to victims, according to the newspaper.

Forbes has reached out to both New York City and Chipotle for comment.

Key Background

The Wednesday complaint follows a suit the city filed in September 2019 for similar violations at five of the company’s Brooklyn restaurants. The city’s Department of Consumer and Worker Protection Commissioner Lorelei Salas told the New York Times the earlier complaint was “just the tip of the iceberg” and that Chipotle did not adequately address the issues the city brought up. Under the Fair Work Week Law, which took effect in 2017, employers must give fast food workers “good faith estimates” of when and how long they’ll work, offer “predictable” work schedules and provide existing employees opportunities to pick up new shifts before hiring new employees.

Further Reading

Chipotle Is Sued by New York City Over Scheduling Practices (New York Times)