Chipotle is Being Sued by NYC for $1 Million

Shares of burrito restaurant chain Chipotle saw its shares drag this week after Wall Street learned that the city of New York is suing the company for $1 million.

A lawsuit was filed on Monday by Mayor Bill de Blasio’s administration which accuses Chipotle of violating nearly every aspect of the city’s Fair Workweek Law. The law requires employers to provide predictable schedules to fast food and retail workers.

Through a suit filed with the city’s Office of Administrative Trials and Hearings, the administration said it seeks $1 million in restitution for workers at five Brooklyn restaurants. The administration is also seeking civil penalties.

“This case exemplifies the abusive practices that this law is intended to end, and Chipotle must come into compliance,” the city’s Department of Consumer and Worker Protection Lorelei Salas stated. “I encourage all fast food workers to come forward if their right to a predictable schedule or new shift is being violated.”

According to the lawsuit, Chipotle has notconsistently provided schedules two weeks in advance, as required. The company also did not get permission and pay the mandated $10 to $100 premiums for last-minute changes or for so-called clopenings, where an individual works two shifts without at least an 11 hour break.

Workers told city investigators that managers required them to sign or sometimes forged their signatures in a schedule change book without explaining why.

Laurie Schalow, Chipotle’s chief reputation officer has said Chipotle is committed to creating a safe environment and wanted workers with concerns to come forward with any concerns, so they can be promptly addressed.

Disclaimer: We have no position in Chipotle Mexican Grill, Inc. (NYSE: CMG) and have not been compensated for this article.