By Kathryn Hardison


Chipotle Mexican Grill Inc. has agreed to pay up to about $20 million to roughly 13,000 workers in a settlement with New York City over claims that the workers' rights to predictable schedules and paid sick leave were violated.

The agreement, announced Tuesday, is the result of a multi-year investigation by the New York City Department of Consumer and Worker Protection into complaints filed by 160 Chipotle employees and by labor union 32BJ SEIU. The workers claimed their rights were violated under the under the Fair Workweek and Paid Safe and Sick Leave law.

Chipotle said it has agreed to pay employees who were working as of April 30 of this year $50 per week of service as an hourly employee going back to Nov. 26, 2017. Past hourly employees, from Nov. 26, 2017, to April 30, would be notified that they can also file a claim to receive a payment, Chipotle said.

The restaurant company would also pay $1 million in civil penalties.

"We're pleased to be able to resolve these issues and believe this settlement demonstrates Chipotle's commitment to providing opportunities for all of our team members while also complying with the Fair Workweek law," said Chipotle Chief Restaurant Officer Scott Boatwright.

New York City Mayor Eric Adams said the settlement with Chipotle is the largest worker protection settlement in New York City history.


Write to Kathryn Hardison at kathryn.hardison@wsj.com


(END) Dow Jones Newswires

08-09-22 1418ET