Following the intervention of the National Labor Relations Board, Chipotle agreed to pay $240,000 to former employees of an Augusta, ME. store.  The case arises from an attempt by workers to form a union.  In response, Chipotle closed the store, effectively depriving the workers of their jobs. 

The National Labor Relations Board ruled that this action was in contravention of federal labor laws and accordingly, imposed a consent agreement by which workers would be paid between $6,000 and $21,000 in back pay and restoration of tenure.  The company will also be obliged to post notices in 40 locations in New England confirming labor rights. Chipotle agreed to not close any locational or to discriminate against workers for supporting union activities.

Laurie Schallow, Chief Corporate Affairs Officer, stated, “We settled this case not because we did anything wrong but because the time, energy and cost to litigate would have far outweighed the settlement agreement.”  She added, “We respect our employees’ rights to organize, under the National Labor Relations Act and are committed to ensuring a fair and just working environment that provides opportunities to all.” Ms Schallow should recognize that companies, as with individuals, are judged by their actions not by their statements. In the age of social media even a hint of employee coercion or exploitation results in degradation of corporate image.