Chipotle to pay $100K to settle federal lawsuit over death of an employee
Posted On June 18, 2021
Chipotle is in the process of paying $100,000 to settle a federal lawsuit that alleged it violated federal overtime regulations.
The restaurant chain settled a federal civil rights lawsuit filed in August alleging that the Mexican restaurant violated its federal law against excessive pay and other workplace protections.
A federal judge in Dallas said Thursday that the settlement will ensure that Chipotle will pay workers who were fired for their efforts in an investigation that found that the company failed to properly train its employees.
The settlement will be announced in the next 24 hours, according to a statement from the company.
Chipotle said in a statement that it has taken action to address the allegations and that it will continue to cooperate with law enforcement.
The company said it is “shocked and saddened” by the allegations, but said that it is committed to providing safe, fair and respectful workplaces for our team members.
The lawsuit accused Chipotle of violating the Fair Labor Standards Act (FLSA) by failing to adequately train its workers and failing to provide them with adequate severance packages and other compensation.
The company was also alleged to have violated the False Claims Act, which requires employers to make workers pay their legal fees and other expenses.
The FLSA requires employers with 25 or more full-time equivalent employees to pay the equivalent of at least $455 a week to employees who are covered by the agency’s National Labor Relations Act.
The Fair Labor Act requires employers making less than $455 to pay workers at least at least the federal minimum wage of $7.25 per hour.
Chipotles employees were fired in September 2016 for making complaints about a supervisor about the restaurant’s practices.
Chiposos legal team said that the lawsuit was brought on behalf of a group of former employees, who said they were retaliated against for making “false and misleading” complaints about the food service company’s policies.
The plaintiffs alleged that Chipotles violations of the FLSA, the False Claim Act and the National Labor Laws resulted in the death of their coworkers and that Chipots failure to pay them adequately was “grossly negligent.”