Chipotle Mexican Grill violated federal labor laws by withholding wage increases, a union claims. Workers who formed a labor union The U.S. Labor Commission found that there was merit.
The fast-food restaurant chain will face a formal complaint from the National Labor Relations Board’s general counsel unless it settles the International Brotherhood of Teamsters’ claims, according to the NLRB.
Chiptotle is accused of violating federal labor law by illegally withholding raises from its Lansing, Michigan, employees after telling them they could not receive raises from other employees because they were union members.
Workers at the Lansing store voted to elect union representatives in July 2022, making it the only store among thousands of U.S. stores to sign a collective bargaining agreement. The first contract is still being negotiated.
Chiptotle did not immediately respond to a request for comment.
The NLRB reached a separate settlement with Chipotle in April 2023, agreeing to pay $240,000 to workers harmed by the company’s decision to close a restaurant in Augusta, Maine, because of unionization efforts.
Recent events may lead to additional scrutiny of Chipotle’s labor practices. Outgoing CEO Brian NiccolWho will leave and take over that position? Starbucks’ helmsman In September, the coffee shop chain also found itself embroiled in a legal battle with the NLRB. unionization efforts At Starbucks.
Headquartered in Newport Beach, California, Chipotle owns and operates more than 3,500 restaurants in the United States, Canada, the United Kingdom, France, Germany, and Kuwait. The company employs more than 120,000 people.
