Chipotle Reaches $8M Proposed Settlement with Former Employees Concerning Overtime Dispute

Former Chipotle employees reached a proposed settlement of up to $8 million with the fast-casual restaurant last week after eight years of hotly contested litigation concerning overtime pay.

New York resident Maxcimo Scott initially filed the nationwide lawsuit in 2012, alleging that the company violated the Fair Labor Standards Act and state wage and hour laws by improperly classifying himself and other apprentices as managers and exempt from federal overtime requirements. 

“Rather than managing and supervising the restaurant, Apprentices typically spend the majority of their shifts working the assembly line, filling orders for customers, grilling, operating the cash register, and preparing items for the line including salsa, guacamole, chopped vegetables and other food items,” the lawsuit states. 

Additional plaintiffs, including more than 500 opt-in plaintiffs, later joined the lawsuit in amended complaints. Almost $2 million of the proposed settlement agreement will go to collective members if approved by the judge, court documents state.

Seven plaintiffs, including Scott, are seeking service awards of $15,000. The proposed settlement also includes service awards of $500 to be paid to the 64 collective members who appeared for deposition. 

Plaintiffs are represented by Outten & Golden LLP, Fitapelli & Schaffer LLP and Shavitz Law Group PA