A union claims Chipotle Mexican Grill violated federal labor laws by withholding raises from workers who organized themselves into unions has merit, the US Labor Board’s attorney general has determined.
The quick-service restaurant chain will face a formal complaint from the National Labor Relations Board’s general counsel if it does not resolve allegations by the International Brotherhood of Teamsters, according to the NLRB.
Chipotle is accused of violating federal labor laws by telling employees in Lansing, Michigan, that the company could not give them raises granted to other employees because they had organized a union and then illegally withheld the raise from them.
Workers at the Lansing store voted for union representation in July 2022, making them the only such store among the burrito chain’s thousands of U.S. stores to sign up for collective bargaining. The first contract is still under negotiation.
Chipotle did not immediately respond to a request for comment.
In April 2023, the NLRB reached a separate settlement with Chipotle in which it agreed to pay $240,000 to workers affected by its decision to close a restaurant in Augusta, Maine, due to union efforts.
The latest development could draw further scrutiny of Chipotle’s labor practices and outgoing CEO Brian Niccolwho leaves the service to take the helm of Starbucks in September. The coffee shop chain has also been embroiled in legal battles with the NLRB over trade union efforts at Starbucks.
Newport Beach, Calif.-based Chipotle owns and operates more than 3,500 restaurants in the United States, Canada, the United Kingdom, France, Germany and Kuwait. The company employs more than 120,000 people.