Chipotle Is Plagued By Labor Law Violations

Apart from the food safety issues, Chipotle Mexican Grill, Inc. CMG has been plagued by lawsuits from employees alleging violations of labor laws.

According to a report from the New York Post, the burrito chain has been hit with 115 federal employee lawsuits in the last five years. This implies about 4.85 cases per 100 stores. The report says this is more than three times the rate of its two peers, Panera Bread Co PNRA and Starbucks Corporation SBUX.

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Of the 115 suits filed against Chipotle from July 2011 through February 29, 2016, the most alleged was discrimination. Thirty-five of the suits are still active, the report added.

Chipotle shares, which were once trading at $750 levels in August 2015, have dropped about 38 percent to close Tuesday at $471.51.