Chipotle Mexican Grill, Inc. (CMG) Faces Overtime Pay Lawsuit

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Chipotle Mexican Grill, Inc. (NYSE:CMG) is facing a lawsuit concerning overtime pay.

Chipotle Mexican Grill, Inc. (CMG) Faces Overtime Pay LawsuitThe lawsuit against Chipotle Mexican Grill, Inc. comes from Carmen Alvarez. She was working as an apprentice at the company and claims she worked more than 50 hours a week. However, Alvarez says she was only ever paid for 40 hours of work a week.

The apprentice program at Chipotle Mexican Grill, Inc. is designed to teach employees how to become managers. Due to this, the company’s apprentices are paid an annual salary and don’t get extra for overtime. Alvarez claims this is wrong as she mostly worked the assembly line, which is what the average employee does.

Chipotle Mexican Grill, Inc. has denied any wrongdoing in the case. It says that it is “compliant with applicable laws.” Changes to overtime rules made last year may support Alvarez’s case against CMG, but those changes are currently being fought in court, reports CNNMoney.

According to the lawsuit, Chipotle Mexican Grill, Inc. prepared for the change in overtime rules by switching its apprentices to hourly wages, which makes them eligible for overtime. When the rule was challenged in court, CMG allegedly switched these employees back to annual salaries that don’t allow them overtime pay.

The overtime pay rule at the center of the lawsuit was a late change made by the Obama administration on Dec. 1, 2016. It was blocked by a Texas judge. Now the Trump administration is appealing the judge’s ruling on the matter, New York Post notes.


Article printed from InvestorPlace Media, https://investorplace.com/2017/06/chipotle-mexican-grill-inc-lawsuit-cmg/.

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