Chipotle owes overtime pay to thousands: lawsuit

A lawsuit filed against Chipotle on Wednesday claims that a federal rule expanding overtime pay to millions of workers is in effect, despite an injunction late last year that banned the Labor Department from enforcing the regulation.

The proposed class-action lawsuit, which was filed in the U.S. District Court in New Jersey, says Chipotle should be paying time and a half to employees who work more than 40 hours a week and earn less than $47,476 a year - as would be required by the rule.

Attorneys representing Chipotle employees in New Jersey argue that the rule still took effect as scheduled on Dec. 1 because the court that ordered the injunction has not issued a final decision or repealed the regulation.

The suit also claims that the injunction applied narrowly to the Labor Department and does not block other parties, such as workers, from enforcing the rule in court.

At issue is a Labor Department rule finalized under the Obama administration that would more than double the income threshold - from $23,660 a year to $47,476 a year - under which workers must be eligible for overtime pay. Depending on the outcome of the case, the suit could potentially lead to significant scheduling changes and back pay for Chipotle employees. It also could have implications for millions of other workers who would become eligible for overtime pay under the rule.

Chipotle and the Labor Department did not respond to requests for comment in time for publication.