The $20 Million Chipotle Settlement: What All Employers Need to Know
Rachel Demarest Gold, Esq.
Partner
Employers: Risk Alert
What you need to know about the $20 million Chipotle Settlement
Week before last, NYC made headlines with their $20 million Chipotle settlement. The number is scary – even to a company that size – particularly one that is publicly traded. While the bulk of Chipotle’s problem had to do with a law that applies only to “Fast Food Workers”, below there are a few takeaways for everyone. (There is more information about the Fair Work Week Law here): https://www1.nyc.gov/site/dca/workers/workersrights/fastfood-retail-workers.page
First, take note that the NYC law that was the main focus of the lawsuit deals with employee scheduling. While worker protection laws are proliferating, this issue will come up again - and in a context beyond Fast Food. Already on the books is the Temporary Schedule Change Law which requires most employers to accommodate up to 2 days of an employee’s schedule change requests for certain purposes. More about that requirement (which probably DOES affect you), here:
https://www1.nyc.gov/assets/dca/downloads/pdf/workers/TemporaryScheduleChange-Overview.pdf
Second, one of the biggest price-tags was the result of the Employer’s failure to post and deliver Employee notices. There are many such requirements under both City and State laws and failure to provide the notices mandated often comes with statutory penalties that add up fast. More information about mandated notices and postings can be found, for NYC,
Here: https://www1.nyc.gov/site/cchr/media/posters.page
For NYS, here: https://dol.ny.gov/notices-employees
Third, part of this case was about the NYC Paid Sick Leave Law (note that paid sick leave is also a statewide requirement). Most employers must provide between 40-56 hours of paid leave per year under the law. The mandates, however, do not end there. Amongst the other provisions Chipotle was accused of violating (and paid for) include:
· Employers must allow employees to use safe and sick leave as it is accrued, with no waiting period for new hires.
· Employees can use safe and sick leave for unexpected reasons without giving advance notice.
· Employers must provide employees with a written safe and sick leave policy that describes the benefit and how to use it. You can find out more about the City Law here:
https://www1.nyc.gov/site/dca/about/paid-sick-leave-law.page
While NYC’s settlement with Chipotle has a lot to do with their size and specific industry, there are issues it addresses that are starting to affect all businesses of all sizes. Employers must take the time to find out what notices and postings are required in their jurisdiction and keep records of when and how they are distributed to employees. Failure to make the investment can be financially devastating.
