Carmen Alvarez said she was crushed when her employer, ChipotleMexican Grill Inc., reversed its decision to pay her and her fellowworkers overtime late last year, despite a new federalrule that she believed enabled her to receivetime-and-a-half for work over 40 hours.
The 55-year-old, who worked for the fast-food chain in NewJersey since 2013, said she finally received the boost, along withmillions of other workers newly eligible for overtime pay. It wasthen quickly pulled away thanks to a court decision that temporarilyhalted the U.S. Department of Labor from enforcingthe regulation, according to a lawsuit filed in the U.S. DistrictCourt of New Jersey Wednesday.
The lawsuit claims the overtime rule is still in effect, despite theinjunction, and companies that decided not to comply are violatingfederal labor laws. In 2016, the Labor Department updated thefederal salary threshold for overtime eligibility for the firsttime in 12 years, from $23,660 to $47,476. It made 4.2 millionworkers newly eligible for overtime pay.
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