Business

Chipotle Is Facing A Massive Lawsuit, And It Has Nothing To Do With E. Coli

Chipotle Sign: Jonathan Weiss/shutterstock.com, Gavel: Andrey_Popov/shutterstock.com

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Ted Goodman Contributor
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Nearly 10,000 current and former Chipotle employees claim the company routinely required them to work after “punching out,” in a practice known as wage theft.

Nine thousand, nine hundred sixty-one current and former employees have joined the lawsuit, known as Turner vs. Chipotle, which was originally filed in 2014. In the suit, Plaintiff Leah Turner claimed that while working for Chipotle in 2010 and 2011, she was often automatically “clocked out” of work before actually finishing. She claimed that she was required to attend meetings off the clock, and was not paid.

The plaintiffs alleged Chipotle, “has devised and implemented general policies and practices to deprive its hourly paid employees of compensation to which they are entitled.” The suit also allegedChipotle implemented the policy through “centralized, company-wide” budgets that incentivized managers to under-staff their restaurants. The suit highlights Chipotle’s automated time keeping devices that punch employees off the clock, even if the employee is still working.

The lawsuit may alter the previous perception about how well Chipotle treated its employees. Hourly employees are eligible for tuition reimbursements, and receive paid sick and vacation time. Chipotle denied any wrongdoing, and said that the case has no merit, according to CNN Money.

The popular taco and burrito joint is still struggling to overcome last year’s E. coli outbreak, which led to the closure of 43 stores and a massive hit to its reputation. The outbreak landed over 500 customers in the hospital.

Chipotle is not alone in defending its reputation and brand against accusations of labor violations. Papa John’s franchises in New York City have faced a spate of wage theft suits in recent years, and a federal judge in California just ruled that McDonald’s can be held liable for alleged wage theft cases arising at individual franchises in California.

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