Silicon Valley Company Pays Workers $1.21/hr for 120-hour Weeks; Chipolte Slapped with Three Wage-theft Lawsuits; Jimmy Johns Imposes Non Compete Clauses

Friday, October 24, 2014

Chipotle is known for paying their employees a starting wage of over $10 an hour, including benefits and two weeks of vacation. But the Denver based company was slapped with three lawsuits alleging labor violations, which range from employees working 'off the clock' to management receiving bonuses for staying within their payroll budget.

3 Lawsuits Challenge Chipotle's Reputation As An Awesome Employer - Business Insider

It's hard to believe that companies can get away with paying less than the minimum wage, but it happens more often than it may seem. Electronics For Imaging paid workers $1.21 an hour to work 120-hour weeks installing computers. "In a statement, the company said it didn't realize it was illegal to pay workers temporarily in the United States the same wages they earn in their home countries."

Company Finds Out The Hard Way It's Illegal To Pay $1.21 An Hour In America - Huffington Post

If that isn't absurd enough, Jimmy Johns is facing a class action lawsuit alleging labor violations and, oddly enough, imposing non compete clauses on its low paid workers. Basically, they are making their new hires sign a piece of paper that says they can't work at a competitors store for a certain amount of time. How awful is that? 

Jimmy John's under fire for worker contracts - CNN Money

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