Chipotle Asks Court to Hold Employees in Contempt

The Obama overtime rule has been injuncted, but it has played havoc with many employers, perhaps none more so than Chipotle Mexican Grill.

It’s critical to keep up with local legislation.

According to Politico Pro, Chipotle requested today that a federal court in Texas proceed with a scheduled hearing on the company’s motion for contempt against workers who alleged they were owed overtime.

The workers sued Chipotle in June, arguing that the company withheld time-and-a-half pay from them under the Obama administration’s rule, even though the rule never took effect because the same Texas court issued a preliminary injunction against it in November. In response to the lawsuit, Chipotle requested that the court hold the workers in contempt.

In August the court made its temporary injunction permanent and denied all pending motions, including Chipotle’s motion for contempt. But in a letter, Chipotle said “this Court’s recent rulings have not obviated the need for this proceeding,” and noted that the workers’ case was continuing in New Jersey. Chipotle requested that the hearing “proceed as scheduled on September 28.”