`Case L:12-cv-0838AECANwe
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`ocument 1 Filed 11/15/12 Page 1 of 16
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`FITAPELLI & SCHAFFER, LLP
`Joseph A.Fitapelli
`Brian S. Schaffer
`Frank J. Mazzaferro
`475 Park Avenue South, 12" Floor
`New York, New York 10016
`Telephone:
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`(212) 300-0375
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`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE SOUTHERN DISTRICT OF NEW YORK
`
`MAXCIMOSCOTT on behalfof Hi
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`similarly situated,
`
`
`Plaintiff,
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`
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`CHIPOTLE MEXICANGRILL, INC.,
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` Defendant.
`
`-against-
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`Plaintiff Maxcimo Scott (“Plaintiff”), individually and on behalf of all others similarly
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`Situated, as class representative, upon personal knowledgeas to himself, and upon information
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`and belief as to other matters,alleges as follows:
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`NATURE OF THE ACTION
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`1.
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`This lawsuit seeks to recover overtime compensation for Plaintiff and his similarly
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`situated co-workers, salaried Apprentices and/or Assistant Managers (hereinafter “Apprentices”), who
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`work or have worked at the Chipotle Mexican Grille Restaurants nationwide(collectively “Chipotle’’).
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`2.
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`Chipotle is a chain of Mexican style Restaurants knownforits’ natural ingredients
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`and assembly line production. According to their website, Chipotle considers itself a “fast-
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`casual”dining establishment, where “customers expect food quality that’s more in line with full-
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`Service
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`restaurants,
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`coupled with
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`the
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`speed
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`and
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`convenience
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`of
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`fast
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`food.”
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`http://www .chipotle.com/en-us/company/about_us.aspx.
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`3.
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`According to Chipotle’s Form 10-K for the fiscal year ending on December31,
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`2011, Chipotle operated 1,350 restaurants, employed 2,570 salaried employees and 28,370
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`hourly employees. For the fiscal year 2011, Chipotle earned approximately $2.27 billion dollars
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`in revenue.
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`4.
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`Chipotle’s restaurants are designed around the conceptof an open kitchen, where
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`employees are constantly engaging customers and preparing meals in front of customers in an
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`assembly line production.
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`In fact, Chipotle states in its’ 2011 form 10-K that, “All of our
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`restaurant employees are encouraged to interact with customers no matter their job, whether
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`preparing food or serving customers...” Chipotle further states thatits’ “employees spend hours
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`preparing our foodonsite.”
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`5.
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`At Chipotle, Apprentices are required to assist in service while on duty. Rather
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`than managing and supervising the restaurant, Apprentices typically spend the majority of their
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`shifts working the assembly line, filling orders for customers, grilling, operating the cash
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`register, and preparing items for the line including salsa, guacamole, chopped vegetables and
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`other food items.
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`6.
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`Regardless of the amount of hours worked, Apprentices are compensated by an
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`average Salary starting under $40,000.00 per year and do not receive overtime compensation.In
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`that regard, Defendants classify Apprentices as a managerial position, and thus purportedly
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`exempt from overtime pay. However, as outlined above, an Apprentice’s primary duties are
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`similar to those performed by hourly employees and are thus not exempt from the overtime
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`provisions of the Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq. (“FLSA”) and New York
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`Labor Law (“NYLL”), Article 6, §§ 190 et seq., and Article 19, §§ 650 et seq.
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`7.
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`Upon information and belief, Defendant applied the same employmentpolicies,
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`practices, and proceduresto all similarly situated employees at the nationwide chain of Chipotle
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`restaurants.
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`8.
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`Plaintiff brings this action on behalf of himself and similarly situated current and
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`former employees whoelect to opt-in to this action pursuant to the FLSA, and specifically,
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`the
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`collective action provision of 29 U.S.C. § 216(b),
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`to remedy violations of the wage-and-hour
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`provisions of the FLSA by Defendants that have deprived Plaintiff and other similarly situated
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`employeesoftheir lawfully earned wages.
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`9.
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`Plaintiff also brings this action on behalf of himself and all similarly situated
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`current and former employees pursuant to Federal Rule of Civil Procedure 23 to remedyviolations
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`of the NYLL, Article 6, §§ 190 et seg., and Article 19, §§ 650 et seq., and the supporting New
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`York State Department of Laborregulations.
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`THE PARTIES
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`Plaintiff
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`MaxcimoScott
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`10.
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`MaxcimoScott (“Scott”) is an adult individual who is a resident of Bronx, New
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`York.
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`11.
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`From in or around 2007 to 2009 Scott was employed by Defendant as a Crew
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`Member at the Chipotle located at 9 Saint Marks Place, New York, New York 10003 (St.
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`Marks”). From in or around 2009 to October 17, 2011, Scott was employed as an Apprentice at
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`the St. Marks Chipotle. From in or around October 17, 2011 to the present, Scott has been
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`employed as a General Managerat the Chipotle located at 55 E 8"" Street, New York, New York
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`10003.
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`12.
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`As an Apprentice, Scott frequently performed the functions of an hourly Crew
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`memberonthe line. Defendant knew aboutthis practice and encouragedthis practice in order to
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`reduce labor costs.
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`13.
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`Scott
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`frequently worked over 40 hours per week with a maximum of
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`approximately 55 hours per week.
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`14.
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`Pursuant to Chipotle’s policy and pattern or practice, Chipotle did not pay Scott
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`premium overtime pay when he worked as an Apprentice for their benefit in excess of 40 hours
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`in a workweek.
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`15.
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`16.
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`Defendant
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`Scott is a covered employee within the meaning of the FLSA and the NYLL.
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`A written consentform for Scott is being filed with this Class Action Complaint.
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`Chipotle Mexican Grill, Inc.
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`17.
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`Chipotle Mexican Grill,
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`Inc.
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`(“Chipotle Mexican Grill”) has owned and/or
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`operated the Chipotle restaurants during the relevantperiod.
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`18.
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`Chipotle Mexican Grill is a foreign business corporation organized and existing
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`under the laws of Delaware.
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`19.
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`Upon information and belief, Chipotle Mexican Grill’s principal executive office
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`is located at 1401 WynkoopStreet, Suite 500, Denver, Colorado, 80202.
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`20.
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`At all times relevant, Chipotle Mexican Grill has been the corporateentity listed
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`on Plaintiff's paychecks and W-2 forms.
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`21.
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`Chipotle Mexican Grill is a covered employer within the meaning of the FLSA
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`and the NYLL,and,atall times relevant, employed Plaintiff and similarly situated employees.
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`22.
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`At all times relevant, Chipotle Mexican Grill maintained control, oversight, and
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`direction over Plaintiff and similarly situated employees, including timekeeping, payroll, and
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`-4-
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`other employmentpractices that applied to them.
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`23.|Chipotle Mexican Grill applies the same employment policies, practices, and
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`procedures to all Apprentices at
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`the Chipotle restaurants,
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`including policies, practices, and
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`procedures with respect to the payment of overtime compensation.
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`24.
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`Upon information and belief, at all
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`times relevant, Chipotle Mexican Grill’s
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`annual gross volurne of sales made or business done was notless than $500,000.00.
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`JURISDICTION AND VENUE
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`25.
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`This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331 and 1337
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`and jurisdictionover Plaintiffs state law claims pursuant to 28 U.S.C. § 1367.
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`26.
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`This Court also has jurisdiction over Plaintiff's claims under the FLSA pursuant
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`to 29 U.S.C. § 216(b).
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`27.
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`This Court is empowered to issue a declaratory judgment pursuant to 28 U.S.C.
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`§§ 2201 and 2202.
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`28.
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`Venue is proper in the Southern District of New York pursuant to 28 U.S.C.
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`§ 1391(b)(2) because a substantial part of the events or omissions giving rise to the claims
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`occurred in thisdistrict.
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`COLLECTIVE ACTION ALLEGATIONS
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`29.
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`Plaintiff brings the First Cause of Action, an FLSA claim, on behalf of himself and
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`all similarly situated persons who have worked as Apprentices at Chipotle restaurants nationwide,
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`whoelectto opt-into this action (the “FLSA Collective”).
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`30.
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`Defendantis liable under the FLSA for, inter alia, failing to properly compensate
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`Plaintiff and othersimilarly situated Apprentices.
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`31.
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`Consistent with Defendant’s policy and pattern orpractice, Plaintiff and the FLSA
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`Collective were not paid premium overtime compensation when they worked beyond 40 hoursin
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`-5-
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`a workweek.
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`32.
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`All of the work that Plaintiff and the FLSA Collective have performed has been
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`assigned by Defendant, and/or Defendant has been aware ofall of the work that Plaintiff and the
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`FLSA Collective have performed.
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`33.
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`As part ofits regular business practice, Defendant has intentionally, willfully, and
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`repeatedly engaged in a pattern, practice, and/or policy of violating the FLSA with respect to
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`Plaintiff and the FLSA Collective. This policy and pattern or practice includes,butis not limitedto:
`
`(a)
`
`(b)
`
`(c)
`
`including Plaintiff and the FLSA
`willfully failing to pay its employees,
`Collective, premium overtime wages for hours that they worked in excess of 40
`hours per workweek;
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`willfully misclassifying Plaintiff and members of the FLSAcollective as exempt
`frorn the protections of the FLSA; and
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`willfully failing to record all of the time that its employees, including Plaintiff and
`the FLSA Collective, have worked for the benefit of Defendant.
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`34.
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`Defendant is aware or should have been aware that federal law required them to pay
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`Plaintiff and the FLSA Collective overtime premiumsfor hours worked in excess of 40 per workweek.
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`35.
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`36.
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`37.
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`Plaintiff and the FLSA Collective perform or performed the same primary duties.
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`Defendant’s unlawful conduct has been widespread,repeated, and consistent.
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`There are many similarly situated current and former Apprentices who have been
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`underpaid in violation of the FLSA who would benefit from the issuance of a court-supervised
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`notice of this lawsuit and the opportunity to join it. This notice should be sent to the FLSA
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`Collective pursuant to 29 U.S.C. § 216(b).
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`38.
`
`Those similarly situated employees are known to Defendant, are readily
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`identifiable and can be located through Defendant’s records.
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`Case 1:12-cv-08333-ALC-SN Document1 Filed 11/15/12 Page 7 of 16
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`CLASS ACTION ALLEGATIONS
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`39,
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`Plaintiff brings the Second Cause of Action, a NYLL claim, under Rule 23 of the
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`Federal Rules of Civil Procedure, on behalf of himself and a class of persons consistingof:
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`All persons who work or have worked as an Apprentice
`and/or Assistant Manager and similar employees at
`the
`Chipotle restaurants between November 15, 2012 and the
`date of final judgmentin this matter (the “Rule 23 Class”).
`
`40.
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`Excluded
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`from the Rule
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`23 Class
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`are Defendant, Defendant’s
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`legal
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`representatives, officers, directors, assigns, and successors, or any individual who has, or whoat
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`any time during the class period has had, a controlling interest in Defendant; the Judge(s) to
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`whom this case is assigned and any memberof the Judges’ immediate family; and all persons
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`who will submit timely and otherwise proper requests for exclusion from the Rule 23 Class.
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`41.
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`The members of the Rule 23 Class are so numerousthat joinder of all membersis
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`impracticable.
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`42.
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`Upon information and belief,
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`the size of the Rule 23 Class is at
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`least 50
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`individuals. Although the precise number of such employees is unknown,the facts on which the
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`calculation of that number dependsare presently within the sole control of Defendant.
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`43.
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`Defendant has acted or has refused to act on grounds generally applicable to the
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`Rule 23 Class, thereby making appropriate final injunctive relief or corresponding declaratory
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`relief with respect to the Rule 23 Class as a whole.
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`44.
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`Commonquestions of law and fact exist as to the Rule 23 Class that predominate
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`over any questionsonly affecting them individually andinclude, butare not limited to, the following:
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`(a)
`
`(b)
`
`whether Defendant violated NYLL, Articles 6 and 19, and the supporting New
`York State Department of Labor regulations;
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`whether Defendant failed to compensate Plaintiff and the Rule 23 Class for hours
`worked in excess of 40 hours per workweek;
`
`
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`Case 1:12-cv-08333-ALC-SN Document1 Filed 11/15/12 Page 8 of 16
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`(c)
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`(d)
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`(e)
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`(f)
`
`(g)
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`whether Defendant misclassified Plaintiff and the Rule 23 Class;
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`whether Defendantfailed to keep true and accurate time and pay recordsfor all hours
`worked by Plaintiff and the Rule 23 Class, and other records required by the NYLL;
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`whether Defendant failed to furnish Plaintiff and the Rule 23 Class with an
`accurate statement of wages, hours worked, rates paid, and the gross wages as
`required by the NYLL;
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`whether Defendant’s policy of failing to pay workers was instituted willfully or
`with reckless disregard of the law; and
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`the nature and extent of class-wide injury and the measure of damages for those
`injuries.
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`45.
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`The claimsof Plaintiff are typical of the claims of the Rule 23 Class he seeks to
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`represent. Plaintiff and all of the Rule 23 Class members work, or have worked, for Defendant
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`as Apprentices at Chipotle. Plaintiff and the Rule 23 Class members enjoy the samestatutory
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`rights under the NYLL,including to be paid for all hours worked and to be paid overtime wages.
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`Plaintiff and the Rule 23 Class members have all sustained similar types of damagesasaresult
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`of Defendant’sfailure to comply with the NYLL. Plaintiff and the Rule 23 Class members have
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`all been injured in that they have been uncompensated or under-compensated due to Defendant’s
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`commonpolicies, practices, and patterns of conduct.
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`46.
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`Plaintiff will fairly and adequately represent and protect the interests of the
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`members ofthe Rule 23 Class. Plaintiff understands that as class representative, he assumesa
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`fiduciary responsibility to the class to represent its interests fairly and adequately. Plaintiff
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`recognizes that as class representative, he must represent and considerthe interests of the class
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`just as he would represent and consider his own interests. Plaintiff understands that
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`in
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`decisions regarding the conductofthe litigation and its possible settlement, he must not favor
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`his owninterests over the class. Plaintiff recognizes that any resolution of a class action must
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`be in the best interest of the class. Plaintiff understands that in order to provide adequate
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`representation, he must be informed of developments in litigation, cooperate with class
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`counsel, and testify at deposition and/or trial. Plaintiff has retained counsel competent and
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`experienced in complex class actions and employmentlitigation. There is no conflict between
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`Plaintiff and the Rule 23 members.
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`47.
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`A class action is superior to other available methods for the fair and efficient
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`adjudicationofthis litigation. The members of the Rule 23 Class have been damagedand are
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`entitled to recovery as a result of Defendant’s violations of the NYLL, as well as their common
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`and uniform policies, practices, and procedures. Although the relative damages suffered by
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`individual Rule 23 Class members are not de minimis, such damages are small comparedto the
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`expense andburdenof individual prosecutionofthis litigation. The individual plaintiff lacks the
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`financial
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`resources to conduct a thorough examination of Defendant’s timekeeping and
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`compensation practices and to prosecute vigorously a lawsuit against Defendant to recover such
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`damages.
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`In addition, class litigation is superior because it will obviate the need for unduly
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`duplicative litigation that mightresult in inconsistent judgments about Defendant’s practices.
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`48.
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`This action is properly maintainable as a class action under Federal Rule of Civil
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`Procedure 23(b)(3).
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`COMMONFACTUAL ALLEGATIONS
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`49.
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`Throughout his employment with Defendant, Plaintiff and the members of the
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`FLSA Collective and the Rule 23 Class (collectively “Class Members”) consistently worked
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`more than 40 hours per week.
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`50.
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`Plaintiff's duties were assigned to him by his superiors.
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`51.
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`Defendant was awarethat Plaintiff and the Class Members worked more than 40
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`hours per workweek, yet Defendant failed to pay overtime compensation for hours worked over
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`40 in a workweek.
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`52.
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`Defendant did not keep accurate records of hours worked by Plaintiff — Plaintiff's
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`hours are not recorded on paystubs, and Plaintiff was not required to clock in or out, or otherwise
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`record his time.
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`53.
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`Plaintiff and the Class Members’ primary duties were routine, non-exempt tasks
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`including, but not limitedto:
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`a. greeting customers;
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`b.
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`serving customers,
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`c. grilling and preparing food; and
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`d. operating the cashregister.
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`54.
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`Plaintiff and Class Members spent the majority of their time serving customers,
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`working on the assemblyline, and performing the sametasks as the hourly employees.
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`55.
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`Plaintiff and Class Members’ duties did not differ substantially from the duties of
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`non-exempthourly employees.
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`56.
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`Plaintiff and Class Members’ primary job duties as Apprentices did not include:
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`a. Hiring;
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`b. Firing;
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`c. Scheduling; and
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`d. Disciplining other employees.
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`57.
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`Plaintiff's primary duty was not directly related to Defendant or Defendant’s
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`customers’ management or general business operations and did not
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`include the exercise of
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`discretion and independent judgmentregarding matters of significance. In that regard, Plaintiff:
`
`involved in planning Defendant’s long or short
`a. was not
`objectives;
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`term business
`
`b. could not formulate, affect, implement or interpret Defendant’s management
`policies or operating practices;
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`c. did not carry out major assignments that affected Defendant’s business
`operations;
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`d. did not have authority to commit Defendant’s in matters that have significant
`financial impact; and
`
`e.
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`could not waive or deviate from Defendant’s established policies or
`procedures without prior approval.
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`58.
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`Plaintiff's primary duties were manual
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`in nature. The performance of manual
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`labor duties occupied the majority of Scott’s working hours.
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`FIRST CAUSE OF ACTION
`Fair Labor Standards Act — Overtime Wages
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`59.
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`Plaintiff realleges and incorporates by reference all allegations in all preceding
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`paragraphs.
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`60.
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`Defendant has engaged in a widespread pattern and practice of violating the
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`FLSA,as described in this Class and Collective Action Complaint.
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`61.
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`Plaintiff has consented,
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`in writing,
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`to be a party to this action, pursuant to 29
`
`U.S.C. § 216(b).
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`62.
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`At all relevant times, Plaintiff and other similarly situated current and former
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`employees were engaged in commerce and/or the production of goods for commerce within the
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`meaning of 29 U.S.C. §§ 206(a) and 207(a).
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`63.
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`The overtime wage provisions set forth in §§ 201 et seq. of the FLSA apply to
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`Defendant.
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`64.
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`Defendant is an employer engaged in commerce and/or the production of goods
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`for commerce within the meaning of 29 U.S.C. §§ 206(a) and 207(a).
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`65.
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`Atall times relevant, Plaintiff was an employee within the meaning of 29 U.S.C.
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`§§ 203(e) and 207(a).
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`66.
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`Defendant has failed to pay Plaintiff and other similarly situated current and
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`former employees the overtime wages to which theyare entitled under the FLSA.
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`67.
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`Defendant’s violations of the FLSA, as described in this Class and Collective
`
`Action Complaint, have been willful and intentional. Defendant has not made a goodfaith effort
`
`to comply with the FLSA with respect to its’ compensation of Plaintiff and other similarly
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`situated current and former employees.
`
`68.
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`Because Defendant’s violations of the FLSA have been willful, a three-year
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`statute of limitations applies, pursuant to 29 U.S.C. § 255.
`
`69,
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`As a result of Defendant’s willful violations of the FLSA, Plaintiff and all other
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`similarly situated employees have suffered damages by being denied overtime wages in
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`accordance with 29 U.S.C. §§ 201 et seq.
`
`70.
`
`Asa result of the unlawful acts of Defendant, Plaintiff and other similarly situated
`
`current and former employees have been deprived of overtime compensation and other wagesin
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`amounts to be determined at
`
`trial, and are entitled to recover of such amounts,
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`liquidated
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`damages, prejudgmentinterest, attorneys’ fees, costs and other compensation pursuant to 29
`
`U.S.C. § 216(b).
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`-12-
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`SECOND CAUSE OF ACTION
`New York Labor Law — Unpaid Overtime
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`71.
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`Plaintiff realleges and incorporates by reference all allegations in all preceding
`
`paragraphs.
`
`72.
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`Defendant engaged in a widespread pattern, policy, and practice of violating the
`
`NYLL,as detailed in this Class and Collective Action Complaint.
`
`73.
`
`Atall times relevant, Plaintiff and the members of the Rule 23 Class have been
`
`employees and Defendant has been their employer within the meaning of the NYLL.
`
`74,
`
`75.
`
`76.
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`Plaintiff and the Rule 23 Class are covered by the NYLL.
`
`Defendant employed Plaintiff and the Rule 23 Class as an employer.
`
`Defendant has failed to pay Plaintiff and the Rule 23 Class overtime wages to
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`whichthey are entitled under the NYLLArticle 19 §§ 650 et seq., and the supporting New York
`
`State Department of Labor Regulations.
`
`77,
`
`Defendantfailed to pay Plaintiff and the Rule 23 Class overtime at a wage rate of
`
`one and one-half timestheir regular rate of pay.
`
`78.
`
`Defendantfailed to keep, make, preserve, maintain, and furnish accurate records
`
`of time worked byPlaintiff and the Rule 23 Class.
`
`79,
`
`Defendant’s violations of the NYLL, as described in this Class and Collective
`
`Action Complaint, have been willful and intentional.
`
`80.
`
`Due to Defendant’s violations of the NYLL, Plaintiff and the Rule 23 Class are
`
`entitled to recover from Defendant unpaid overtime, reasonable attorneys’ fees and costs of the
`
`action, liquidated damagesas provided for by NYLL Article 6 § 198, and pre-judgmentand post-
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`judgmentinterest.
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`-13-
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`PRAYER FOR RELIEF
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`WHEREFORE,Plaintiff,
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`individually and on behalf of all other similarly situated
`
`persons, respectfully requests that this Court grant the followingrelief:
`
`A.
`
`That, at the earliest possible time, Plaintiff be allowed to give notice of this
`
`collective action, or that the Court issue such notice, to all Apprentices and similarly situated
`
`employees whoarepresently, or have at any time during the three years immediately preceding
`
`the filing of this suit, up through and including the date of this Court’s issuance of court-
`
`supervised notice, worked at Chipotle. Such notice shall inform them that this civil action has
`
`been filed, of the nature of the action, and of their right to join this lawsuit if they believe they
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`were denied proper wages;
`
`B.
`
`Unpaid overtime pay and an additional and equal amountas liquidated damages
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`pursuant to the FLSA andthe supporting United States Department of Labor regulations;
`
`C.
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`Certification of this case as a class action pursuant to Rule 23 of the Federal Rules
`
`of Civil Procedure;
`
`D.
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`Designation of Plaintiff as representative of the Rule 23 Class and counsel of
`
`record as Class Counsel;
`
`E.
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`Issuance of a declaratory judgment that the practices complained of in this Class
`
`Action Complaint are unlawful under the NYLL, Article 6, §§ 190 et seg., NYLL, Article 19,
`
`§§ 650 et seq., and the supporting New York State Department of Labor Regulations;
`
`F.
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`Unpaid overtime pay and liquidated damages permitted by law pursuant to the
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`NYLL;
`
`G.
`
`H.
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`Prejudgment and post-judgmentinterest;
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`An injunction requiring Defendantto payall statutorily required wages and cease
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`-14-
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`Case 1:12-cv-08333-ALC-SN Document1 Filed 11/15/12 Page 15 of 16
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`the unlawful activity described herein pursuant to the NYLL;
`
`I.
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`J.
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`Reasonable attorneys’ fees and costs of the action; and
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`Such otherrelief as this Court shall deem just and proper.
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`Dated: New York, New York
`November15, 2012
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`
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`FITAPELLI & SCHAFFER, LLP
`Joseph A.Fitapelli
`Brian S. Schaffer
`Frank J. Mazzaferro
`475 Park Avenue South, 12'" Floor
`New York, New York 10016
`Telephone: (212) 300-0375
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`Attorneys for Plaintiff and
`the Putative Class
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`-15-
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`Case 1:12-cv-08333-ALC-SN Document1 Filed 11/15/12 Page 16 of 16
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`FAIR LABOR STANDARDS ACT CONSENT
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`I consentto be a party plaintiff in a lawsuit against Chipotle and/orrelated entities
`1.
`and individuals in order to seek redress for violations of the Fair Labor Standards Act, pursuant
`to 29 U.S.C.§ 216(b).
`
`I hereby designate Fitapelli &
`By signing and returning this consent form,
`2.
`Schaffer, LLP (“the Firm”) to represent me and make decisions on my behalf concerning the
`litigation and any settlement.
`I understand that reasonable costs expended on mybehalf will be
`deducted from anysettlement or judgment amount ona prorata basis amongall other plaintiffs.
`I understandthat the Firm will petition the Court for attorney’s fees from any settlement or
`judgment in the amountofthe greater of: (1) the “lodestar” amount, calculated by multiplying
`reasonable hourly rates by the number of hours expended on the lawsuit, or (2) 1/3 of the gross
`settlement or judgment amount.
`I agree to be bound by any adjudication of this action by a
`court, whetherit is favorable or unfavorable.
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`7
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`Signature
`Masry.
`
`Full Legal Name(Print
`
`