Chipotle has agreed to a $7.75 million dollar settlement over allegations that it violated New Jersey child labor laws.
The settlement stems from a 2020 New Jersey Department of Labor Audit that found the company committed more than 30,000 violations impacting minors across the state. The violations included allegations that the company had minors work more hours than state law permits and failed to provide them with “timely and sufficient” meal breaks.
“It makes good business sense to treat all workers, particularly minors, fairly and in accordance with the law,” NJDOL Commissioner Robert Asaro-Angelo said. “There is no excuse for any business, particularly a major, profitable corporation with prior violations, to continually deny young employees their work rights.”
The alleged violations happened between Sept. 1, 2017 and Dec. 31, 2020, according to the settlement agreement. The state department of labor accused Chipotle Mexican Grill of having minor employees work more than the allowable eight hours a day and 40 hours a week, as well as violating a rule banning minors from working more than six consecutive days.
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Under the settlement, the company did not admit guilt. The agreement noted Chipotle and the labor department wanted to “amicably resolve” the matter.
The settlement stipulates that Chipotle must conduct self-audits for three years to ensure compliance with child labor laws, appoint a child labor compliance officer and conduct mandatory training about child labor protections for managers, supervisors and staff members.
“We have reached a settlement with the New Jersey Office of the Attorney General for the events dating back to 2017, and have implemented an enhanced labor scheduling program in our restaurants, creating a more efficient, consistent and compliant environment,” Chipotle Chief Corporate Affairs Officer Laurie Schalow said.
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The $7.75 million in penalties will go to the NJDOL’s Child Labor Law Enforcement Trust Fund, which enforces laws protecting children in the workplace and educates employees and organizations that engage in work involving minors. The company also agreed to pay $85,000 in attorney fees.
