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Chipotle child labour scandal costs chain USD$1.37m

Nick Hall

Global franchise giant Chipotle Mexican Grill has found itself embroiled in a child labour scandal that has rocked the US-based company to its core. More than 13,000 Chipotle child labour violations were recorded at the company’s over 50 corporate-owned locations in the US state of Massachusetts.

According to the Office of Massachusetts Attorney General Maura Healey, the fast-casual Mexican chain kept dozens of teenage workers on the clock until late, directly contravening state labour law restrictions.

Additionally, Chipotle allowed minors to work more than 48 hours per week and beyond the daily nine hour limit.

The Attorney General’s office began investigating the Chipotle child labour violations after receiving a complaint from the parent of a minor employee way back in 2016.

The complaint sparked a state-wide audit, revealing a systematic failure to notify employees of their rights under the appropriate labour laws.

Chipotle child labour violation outcome

In light of the Chipotle child labour violations, the global franchise icon has been cited USD$1.37m in restitution and penalties.

Healey’s office also issued four citations against Chipotle for violating the child labour and earned sick time laws, failing to make timely payment of wages, and records violations.

“Chipotle is a major national restaurant chain that employs thousands of young people across the country and it has a duty to ensure minors are safe working in its restaurants,” Healey said.

“We hope these citations send a message to other fast food chains and restaurants that they cannot violate our child labour laws and put young people at risk.”

Since reports of the Chipotle child labour scandal first broke on Monday, the chain has been steadily working to stem the flow-on effects.

Chipotle has voluntarily agreed to pay USD$500,000 towards a fund to be administered by Attorney General Healey’s office. The fund is set to benefit young people through educational programs on child labour laws, training and workforce development.

The fast-casual Mexican inspired chain has more than 2000 locations across the US, UK, Canada, Germany and France.