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Chipotle Overtime Class Action Lawsuit Overview:
- Who: Chipotle has reached an $8 million settlement with management trainees closing out a class action lawsuit that was first filed in 2012.
- Why: The employees, who allege that Chipotle violated the Fair Labor Standards Act and state wage and hour laws by improperly classifying them and other apprentices as exempt from federal overtime requirements, will get $137,000 for award plaintiffs and a $1.9 million collective fund.
- Why: The case was litigated in New York
Chipotle has reached an $8 million settlement with management trainees who accused the company of not giving them sufficient overtime pay, closing out a class action lawsuit that was first filed in 2012.
The settlement includes $137,000 for award plaintiffs, whereby the seven named plaintiffs will receive $15,000 each and the 64 opt-in plaintiffs who were deposed by Chipotle during “eight years of hotly contested litigation,” will get $500 each, Law360 reports.
There will also be a $1.9 million collective fund established, which will include payments for payroll taxes and service awards. Chipotle has also agreed to pay a separate amount of up to $6.1 million for attorney fees and costs.
The management trainees said in a request to New York federal court to approve the settlement that the amount for class counsel was “far less than the $14,273,427.55 in lodestar and actual out-of-pocket expenses plaintiffs’ counsel expended during the prosecution of this suit.”
The class action was hard fought, bouncing between several courts and undergoing mediation, before reaching the Mexican food chain and its employees reached the settlement agreement.
Chipotle Violated the Fair Labor Standards Act, the Class Action Claimed
The employees allege that Chipotle violated the Fair Labor Standards Act and state wage and hour laws by improperly classifying them and other apprentices as exempt from federal overtime requirements and failing to pay them overtime wages. However, Chipotle denies the allegations and maintains apprentices were properly classified throughout their employment.
“The settlement followed a thorough pre-suit investigation and eight years of hotly contested litigation, which included substantial discovery (including 100 depositions) and significant motion practice,” the employees wrote.
“The Settlement satisfies the criteria for approval of a Fair Labor Standards Act collective action settlement because it resolves a bona fide dispute, was reached after in-depth investigation and extensive discovery, was the result of arm’s-length settlement negotiations between experienced counsel assisted by a private mediator, and provides good value to the workers it will benefit,” the settlement stated.
The class action is just one that Chipotle is facing. In April, Chipotle was accused of worker violations in a lawsuit filed by the City of New York over the chain’s scheduling practices. New York’s Department of Consumer and Worker Protection at the Office of Administrative Trials and Hearings alleged that Chipotle workers are subjected to erratic schedules that change rapidly and require them to work many shifts in a row without extra pay or time off.
Have you ever been employed by Chipotle? Tell us what your experience was like in the comments section below!
The plaintiffs are represented by Justin M. Swartz and Melissa L. Stewart of Outten & Golden LLP, Brian Schaffer and Frank Mazzaferro of Fitapelli & Schaffer LLP and Gregg I. Shavitz of the Shavitz Law Group PA.
Chipotle is represented by Elizabeth Bulat Turner of Martenson Hasbrouck & Simon LLP and Bruce A. Montoya, John K. Shunk and Andrew Smith of Messner & Reeves LLP.
The Chipotle Manager Trainee OT Class Action Lawsuit is Scott v. Chipotle Mexican Grill Inc., Case No. 1:12-cv-08333, in the U.S. District Court for the Southern District of New York.
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10 thoughts onChipotle Reaches $8M Settlement With Management Trainees Alleging OT Violations
In 4/8/2017 I had a stroke because was never able to keep my doctor’s appointments I used to work off the clock at least 3 to 4 times a month I was told I was not doing my job right wasn’t training Is correctly beautiful if I was training correctly there was always a problem. And I had General manager who couldn’t make it to meetings without my Assisting him to get there by Driveing all the time. Telling me I was not a good Apprentice.now I am disabled.
I was a manager for a year and had to work off the clock so many times because weren’t allowed OT.
Does anyone know when settlement checks will be mailed how much and whi I can talk to about the case
I worked for Chipotle for years i would have to open and close not leaving until 3am 4am having to be back to open i was the first take out specialist and manager but didn’t get the pay my boss use to stand by me during lunch rush clapping his hands in my face screaming rapido to the point now im on disability for my anxiety depression i remember getting sick one day having to be rushed to the hospital and hearing my bossess laughing saying the bitch ain’t dead yet so much
Add me every thing I’ve been through and i only get 25 dollars wow
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