📺 Stream EntrepreneurTV for Free 📺

Chipotle Employees Claim the Chain Isn't as Worker-Friendly as You Think Employees at the burrito chain are suing for wage theft in two states.

By Kate Taylor

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Chipotle has managed to craft one of the most progressive reputations in the fast-food and fast-casual restaurant game. Now comes some news that might tarnish that golden reputation a bit.

Class action lawsuits filed by current and former Chipotle workers in Colorado and Minnesota accuse the burrito chain of making employees work extra hours without pay, reports CNN. Employees allege that the restaurant's time-keeping system would automatically punch them out at 12:30 a.m., ignoring that they were still working to clean up the restaurant past that time.

Workers claim that if they complained about the unpaid hours of work, Chipotle would cut their hours or threaten to fire them.

Related: What Happens When a Mall Is Split Between Two Minimum Wages?

The plaintiff is arguing that the wage theft was part of an unofficial policy at the burrito chain. Law firm Fitapelli & Schaffer, which is representing Chipotle workers, is seeking out other "victims of unpaid overtime."

In its defense, Chipotle has denied all allegations of breaking labor laws.

Chipotle has mostly managed to avoid criticism of employee treatment that has hit fast-food franchises such as McDonald's and KFC. The company boasts about its "people culture" that sets it apart from fast-food chains and allows workers to rise through the ranks.

Unlike most fast-food chains, the company can't blame individual franchisees for breaking labor laws and underpaying workers. Chipotle has refused to franchise, allegedly in part to promote its people culture.

This lawsuit could force the public to question if Chipotle is truly worker-friendly or if the chain is just a PR master that knows what customers want to hear.

Related: Why Chipotle Won't Franchise

Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Starting a Business

Most People Have No Business Starting a Business. Here's What to Consider Before You Become an Entrepreneur

You need to find the right business opportunity at the right time and take the right steps to beat the odds.

Leadership

AI vs. Humanity — Why Humans Will Always Win in Content Creation

With the proliferation and integration of AI across organizations and business units, PR and marketing professionals may be tempted to lean into this new technology more than recommended.

Business News

Passengers Are Now Entitled to a Full Cash Refund for Canceled Flights, 'Significant' Delays

The U.S. Department of Transportation announced new rules for commercial passengers on Wednesday.

Growing a Business

Who You Hire Matters — Here's How to Form a Team That's Built to Last

Among the many challenges related to managing a small business, hiring a quality team of employees is one of the most important. Check out this list of tips and best practices to find the best people for your business.

Franchise

Franchising Is Not For Everyone. Explore These Lucrative Alternatives to Expand Your Business.

Not every business can be franchised, nor should it. While franchising can be the right growth vehicle for someone with an established brand and proven concept that's ripe for growth, there are other options available for business owners.

Management

7 Ways You Can Use AI to 10x Your Leadership Skills

While technology can boost individual efficiency and effectiveness, it's essential to balance their use with human intuition and creativity to avoid losing personal connection and to optimize workplace satisfaction.