Chipotle Mexican Grill is facing allegations of violating federal labor laws regarding its treatment of employees at its only unionized location, according to the National Labor Relations Board (NLRB). The board announced on Monday that its Detroit regional director found sufficient evidence to support claims made by the International Brotherhood of Teamsters.
The union alleges that Chipotle unlawfully disciplined an employee in Lansing, Michigan, for participating in union activities. Additionally, it claims the company informed employees that they could not receive raises because of their union status. However, the regional director dismissed a separate allegation that Chipotle had improperly withheld credit card tips from unionized workers. An ongoing investigation is still looking into claims that the company used surveillance on its employees.
If Chipotle and the Teamsters do not reach a settlement, the NLRB’s general counsel may file formal charges against the company, which would be heard by an administrative law judge.
Workers at the Lansing Chipotle voted to unionize two years ago, becoming the first of the chain’s 3,500 locations to do so amid a nationwide trend toward unionization. Laurie Schalow, Chipotle’s Chief Corporate Affairs Officer, stated that the company respects workers’ rights to organize and has been negotiating in good faith with the Lansing store. She attributed delays in bargaining sessions to the union’s actions.
In contrast, the Teamsters accused Chipotle of stalling negotiations and retaliating against workers to hinder the union from achieving a fair labor agreement. The union expressed satisfaction with the NLRB’s findings, stating, “The NLRB made the right call by determining our claims have merit.”
Chipotle has a history of labor law violations. Last year, the company agreed to pay $240,000 to former employees in Augusta, Maine, after closing a restaurant following a union election petition, an action deemed illegal by the NLRB.
The scrutiny of Chipotle’s labor practices may increase as CEO Brian Niccol prepares to transition to Starbucks on September 9. Starbucks has also faced legal challenges regarding unionization efforts since its employees voted to unionize at a store in Buffalo, New York, in 2022. Since then, over 460 Starbucks locations have opted to unionize, and the company has resumed negotiations with its union, Workers United, in hopes of reaching a labor agreement.