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

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

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Innovation

4 Ways Market Leaders Use Innovation to Foster Business Growth

Forward-thinkers constantly strive to diversify and streamline their products and services, turning novelties into commodities desired by many.

Franchise

The 10 Best Franchises to Open in 2018

Here's everything you need to know about the startup costs, training and investment opportunities from the top 10 companies in our Franchise 500.

Business News

'Nothing More Powerful': How to Transform Companies From Within as an 'Intrapreneur,' According to a Microsoft Office and Yahoo! Shopping Cofounder

Elizabeth Funk wrote the first code for Yahoo! Shopping on her own, based on skills she acquired from an "HTML for Dummies" book.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Growing a Business

How Meta Generated $32 Billion in Ad Revenue Last Quarter — and How You Can Create Million-Dollar Weekends Using the Same Strategies

Meta's staggering $32 billion quarterly ad revenue isn't just about size; it's about strategy, systems and execution as well.