In the Turner v. Chipotle lawsuit, the employees allege that Chipotle practiced wage theft by requiring "hourly-paid employees restaurant employees to punch out, and then continue working until they are given permission to leave."
Chipotle has denied any wrongdoing and said it has paid its employees any wages that were owed to them.
The company has faced similar lawsuits before, but the most recent case is the largest one brought against it so far, CNNMoney reports. The plaintiffs come from multiple states across the U.S.
A majority of the complaints concern employee activity near closing time. Employees are typically expected to end their shifts around 11 to 12 p.m., but many of them say they are forced to stay extra hours off the clock and rarely receive additional pay, according to CNNMoney.
Additionally, Chipotle has been trying to rebound from an E. coli outbreak at its stores last year. Analysts have said the company is still struggling because it originally marketed itself as a healthy and fresh fast-casual alternative.
Shares of Chipotle were higher in late afternoon trading on Monday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate CHIPOTLE MEXICAN GRILL INC as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strongest point has been its very decent return on equity which we feel should persist. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins.You can view the full analysis from the report here: CMG