Via Politico Pro, for our restaurant industry members, or those interested in restaurant industry news, and for those interested in overtime regulations and legal issues. This is an unusual case in which an employee class action lawsuit was filed against Chipotle for failing to comply with the new overtime regulations put in place during the last days of the Obama administration, even though the implementation of said regulations was barred by an injunction.
A Texas district court scheduled a hearing today on Chipotle’s motion for contempt against workers who sued the company for failing to comply with the Obama administration’s overtime rule, even though the rule never took effect.
Last year, the same Texas court issued an injunction against the rule. But the Chipotle workers argued that the injunction applied only to the Labor Department and not to private parties. Chipotle disagreed. In its motion for contempt filed Tuesday, Chipotle said that the court “possesses the inherent authority to enforce its own injunctive decree and to punish those who disobey it.”
The hearing will take place Aug. 17 at 8 a.m. at the Paul Brown United States Courthouse in Sherman, Texas.