Chipotle's Employee Lawsuit Is Finally Over

You can't run a business without employees, and fair treatment of those employees is vital for keeping them around, and how businesses like restaurants chains treated employees during the pandemic became a significant issue. Per Pew Research Center, the rate of resigning workers reached a 20-year high in November of 2021, which was properly dubbed "The Great Resignation." Out of these employees who abruptly quit, 63% felt their pay was too low, 63% worried there was no room to move up in their current job, and 57% felt like they were being disrespected at work.

Additionally, 43% said they quit due to a lack of paid time off and insurance, which became even more important during a global pandemic. According to SHRM and research from Accountemps, nine out of 10 employees admitted to going to work even when they're sick. 40% of these workers say it's because they don't want to use a sick day, while 54% say they feel pressured by their employer to get work done anyway. Issues similar to these resulted in an investigation of New York City Chipotle locations, bringing forth a major payout, per CNBC.

Chipotle has reached a settlement following the violation of the rights of workers, according to CNBC. An investigation found that the quick service chain failed to give employees their schedules in a reasonable time or offer paid sick leave as is required by the Fair Workweek Law and the New York City Paid Safe and Sick Leave Law. The Mayor of New York City Eric Adams announced on August 9 that Chipotle has agreed to pay $20 million to 13,000 workers. "Today's settlement with Chipotle is not only a victory for workers by securing up to $20 million in relief for approximately 13,000 workers, but 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 said in a statement.

In an official statement from Chipotle, Chief Restaurant Officer Scott Boatwright wrote, "We have implemented a number of compliance initiatives, including additional management resources and adding new and improved time keeping technology, to help our restaurants and we look forward to continuing to promote the goals of predictable scheduling and access to work hours for those who want them." Hopefully, the issue is handled better going forward.