Thousands of fast-food chain workers are entitled to money after violation of labor laws.
The $20 million payout will go to about 13,000 New York City Chipotle workers.
Who is eligible for the payout?
The $20 million payout stems from Chipotle’s alleged violations against its workers. The chain was preventing them from being given predictable work schedules and paid sick leave. Eric Adams, the New York City Mayor, announced that Chipotle Mexican Grill will pay the $20million to current and former workers for its violation of city labor laws.
Investigators found that there were breaches to the city’s Fair Workweek law. This included failing to post work schedules 14 days in advance. The company was found to be failing to pay a $100 premium for schedule changes too. It was also found that Chipotle failed to ensure there were at least 11 hours between shifts if workers were booked for two shifts on two consecutive days. The chain also failed to offer available shifts to current employees ahead of new hires.
The settlement between the city and Chipotle covers employees who worked at its New York City outlets between 2017 and this year. Any hourly worker is eligible to receive $50 for each week worked between November 26, 2017, and April 30, 2022 under this agreement.
In addition to the payout for employees, Chipotle will also pay $1million in civil penalties to the city.
How to claim
Workers that were employed with Chipotle on April 30, 2022, will receive a check in the mail. The check will come with a letter explaining the calculations. Former workers must file a claim to receive the payment.
Those who left the company before April 30, 2022, will receive a notice by mail, email, and text message. The notice will include how much money they are eligible to receive, how it was calculated, and how to claim online or via mail.
The settlement is a result of an investigation by the Department of Consumer and Worker Protection. An instigation was launched after 160 Chipotle workers filed complaints and Local 32BJ of the Service Employees International Union, according to city officials. Chipotle has taken steps to improve compliance through measures such as improved time-keeping technology.