Chipotle Settles Fair Workweek Suit for $20 Million

On August 10, 2022, Chipotle Mexican Grill, Inc. (“Chipotle”) and New York City reached a $20 million settlement to resolve a suit filed by the city in April 2021 alleging the restaurant committed approximately 599,693 violations of the Fair Workweek Law (“FWL”) and failed to provide its employees the requisite 56 hours of paid sick leave per year.  

The FWL requires fast food restaurants to give its workers their schedules two weeks in advance, unless a worker provides written consent and is paid a bonus for the change in shifts.  Additionally, the FWL requires employers to give their employees at least 11 hours between shifts on consecutive days, to offer additional shifts to workers before hiring new employees, and lays out penalties for schedule changes without proper notice.  

The settlement, which is the largest labor protection settlement in the city’s history, will entitle roughly 13,000 Chipotle employees to $50 for each week that they worked from November 2017 to April 2022 and includes a $1 million civil penalty.  Chipotle is also facing pressure on other fronts, having been accused of closing locations in Maine after employees filed petitions for union elections. 

Workers who believe their employer is subjecting them to workplace violations should seek legal counsel to analyze their potential claims.