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Chipotle, Which Was Founded in Denver, Is Being Sued and Faces Big Fines in New York

Lawsuit stems from law relating to notice of work schedules

A photo of an unwrapped Chipotle burrito sitting on foil with chips beside a Chipotle drink cup and paper bag Getty Images

Eater New York reports New York City has filed a lawsuit against burrito chain Chipotle — alleging that the fast-casual company is breaking New York City labor laws.

Two years ago, New York City implemented a law that requires employers to give staff advance notice of their work schedules by two weeks. The law was intended to give retail and fast food workers more stability.

But Chipotle has allegedly violated this law at five Chipotles in Brooklyn, with more than 30 employees, according to Mayor Bill de Blasio’s office. The Department of Consumer and Worker Protection is also investigating another 11 locations in Manhattan for violations. The city seeks $1 million in penalties, including restitution for employees. Chipotle, in a statement to the Daily News, said that it’s working with the city and “believe[s] the filing of charges was unnecessary.”

It’s the first time that a fast-food chain has been sued under the new Fair Workweek Law.

The first Chipotle was founded at the intersection of East Evans Avenue and South Gilpin Street near the University of Denver in 1993. The corporate headquarters remained based in Denver until March of 2018, when the company announced they would be relocated to Newport Beach, California, ending a 25-year run in Denver.