In an unexpected development for Chipotle Mexican Grill, Inc. (NYSE: CMG), as a 10,000 employees are suing the restaurant chain for making them work extra hours without paying for it. This is called wage theft. Chipotle is allegedly is conducting such behavior all across the United States.
The lawsuit, Turner v. Chipotle, which is called after Leah Turner, a former Chipotle manager from Colorado, is explicit in its accusation. “Chipotle routinely requires hourly-paid restaurant employees to punch out, and then continue working until they are given permission to leave,” the lawsuit states.
Lawyer Kent Williams is representing the employees in the case, and he explained that, “Chipotle has argued this is a few rogue managers who aren’t following policy. Our view, especially given the number of people opting in, is that it’s a systematic problem at Chipotle.”
On the company’s earnings call in late July, Steve Ells, Chipotle’s founder and CEO, said “an extraordinary level of trust in us and have come to know that we will do the right thing when it comes to our food, our employees and our approach to running a business.”