Chipotle accused of misclassifying employees
A Chipotle employee, Maxcimo Scott, recently filed a lawsuit against the popular quick-service burrito chain, alleging the company wrongly classifies its "apprentices" as exempt workers, according to The Associated Press. The Denver-based business operates approximately 1,350 restaurants across the United States where individuals such as Scott work as apprentices as they advance from hourly management positions to general managers.
In his allegation, Scott claims the company is violating the Fair Labor Standards Act (FLSA) because individuals in apprentice positions are paid a $40,000 per year salary, but they are routinely required to work overtime and perform non-managerial work.
To qualify for an exemption from the FLSA, employees in managerial positions must earn at least $455 per week and be paid on a salary basis. Their primary on-the-job duties are also required to align with specific requirements as established in the document, which include overseeing the work of at least two other employees and managing operations. The FLSA also requires individuals in these positions have the authority to hire or fire workers in order to qualify for exemptions.
If workers do fall under this exception, employers are not required to pay premium rates for overtime work - any employee attendance beyond 40 hours in a single week. If they do not, employers must pay them time-and-a-half their standard earnings, including any bonuses or commissions.
In his allegation, Scott claims the company is violating the Fair Labor Standards Act (FLSA) because individuals in apprentice positions are paid a $40,000 per year salary, but they are routinely required to work overtime and perform non-managerial work.
To qualify for an exemption from the FLSA, employees in managerial positions must earn at least $455 per week and be paid on a salary basis. Their primary on-the-job duties are also required to align with specific requirements as established in the document, which include overseeing the work of at least two other employees and managing operations. The FLSA also requires individuals in these positions have the authority to hire or fire workers in order to qualify for exemptions.
If workers do fall under this exception, employers are not required to pay premium rates for overtime work - any employee attendance beyond 40 hours in a single week. If they do not, employers must pay them time-and-a-half their standard earnings, including any bonuses or commissions.
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