Earlier in September, workers under the union 32BJ in New York City had filed complaints against the fast food chain Chipotle (NYSE: CMG). Following the complaints, New York City had filed a lawsuit against Chipotle accusing the corporation of violating the city's Fair Workweek Law. In the suit, NYC is seeking at least $1 million in restitution for workers and penalties.
The complaints from the workers alleged that Chipotle was abusing workers at five of its locations in Brooklyn, violating the law's requirements that fast-food companies need to notify workers of their weekly schedules at least two weeks in advance. Under the law, workers have to agree to last-minute schedule changes in writing and employers must pay workers a premium for making these changes. Companies in NYC are also required to give workers the opportunity for additional hours instead of hiring more part-timers.
On Tuesday, Chipotle faced a new wave of labor complaints in various New York City chains. The complaints have now accused over 20 facilities, with workers agreeing that they cannot schedule their lives outside of their work week.
32BJ's President Kyle Bragg stated that, "when fast food companies violate these provisions, workers lack that advance notice they need to plan other responsibilities such as second jobs, doctors' appointments, or childcare."
Many of the workers in the suit have worked with the company for years, but just could no longer deal with the stress of never knowing what their work schedule may become. Chipotle had a reported turnover rate of 145% for hourly workers last year, down from its previous 158% the year prior.
"Chipotle has been working cooperatively with the city to ensure we have systems and processes in place to comply with the law, so we believe the filing of charges was unnecessary." Laurie Schalow, Chipotle's Chief Corporate Reputations Officer, stated. "Regardless, we will continue to cooperate with the city and we are addressing any prior noncompliance concerns.
According to CNBC, the National Restaurant Association, the International Franchise Association, and the New York State Restaurant Association have been taking legal actions against the city's law since December. The lobbying groups argue that the policy is prohibitively expensive for franchises, who are independent from the corporation.