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Chipotle workers sue for overtime, testing scope of Obama-era rule

The lawsuit claims the overtime rule is still in effect, despite the injunction, and companies that decided not to comply are violating federal labor laws.

By Erin Mulvaney | Updated on June 09, 2017
Chipotle spokesman Chris Arnold said the company’s policy is to not comment on ongoing legal proceedings. (Photo: Proshob/Wikimedia Commons)

Carmen Alvarez said she was crushed when her employer, Chipotle Mexican Grill Inc., reversed its decision to pay her and her fellow workers overtime late last year, despite a new federal rule that she believed enabled her to receive time-and-a-half for work over 40 hours.

The 55-year-old, who worked for the fast-food chain in New Jersey since 2013, said she finally received the boost, along with millions of other workers newly eligible for overtime pay. It was then quickly pulled away thanks to a court decision that temporarily halted the U.S. Department of Labor from enforcing the regulation, according to a lawsuit filed in the U.S. District Court of New Jersey Wednesday.

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