Chipotle loses $7.7M sexual harassment suit

chipotle mexican grill sign

In another public relations setback for Chipotle, the fast-casual chain was ordered to compensate a former employee $7.7 million for repeated sexual abuse three years ago by two unit-level managers.

The plaintiff was 16 at the time and a new hire for a Chipotle in Houston. The managers had an alleged 50 sexual liasons with the girl, or relations every 3.5 days during her employment.

The girl was not identified because she was underage at the time.

Chipotle issued a statement saying it did not learn of the alleged harassment until the girl’s lawyers had filed a lawsuit and demanded money. By that time, the statement indicated, the two managers were no longer employed by the company.

The statement asserted that the chain does everything within its power to protect employees from sexual harassment.

All Chipotles are company-owned and operated.

The jury's finding for the plaintiff was the latest setback for the chain, which has been reeling since customers were sickened by E. coli at a number of units in late 2015. More recently, the brand's marketing chief, Mark Crumpacker, was indicted in the breakup of a cocaine supply ring in New York City.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

The ongoing dangers of third-party delivery

The Bottom Line: The parent company of Tender Greens, which filed for bankruptcy this week, is laying part of the blame on its heavier reliance on delivery orders.

Technology

As restaurant tech consolidates, an ode to the point solution

Tech Check: All-in-one may be all the rage, but there’s value in being a one-trick pony.

Financing

Steak and Ale comes back from the dead, 16 years later

The Bottom Line: Paul Mangiamele has vowed to bring the venerable casual-dining chain back for more than a decade. He finally fulfilled that promise. Here’s a look inside.

Trending

More from our partners