Fast food chains that violate New York Worker's Rights could end up losing the right to do business in NYC. New York City Council has issued a new bill that many fast food businesses are afraid of.
The bill discussed yesterday would allow New York’s Department of Labor to order the city’s health department to suspend, revoke, deny or otherwise restrict a restaurant’s license if the business has paid $500,000 or above in fines for violating the law.
The new bill would also increase fines for law infractions to $1,500, up from the existing threshold of $750. It would also increase the penalty for repeat offenses to $2,000. Workers would be entitled to 14 days of severance pay if a company's food license was withdrawn under the law.
Far too often, massive corporations like Chipotle have viewed the fines and occasional lawsuits sparked by their repeated violations of New York City employment laws, such as the Fair Work Week Law, as little more than the cost of doing business. Said Kyle Bragg, the president of 32BJ.
If a fast food business passed the rules, it appears to encompass corporations such as Chipotle, which agreed to pay $20 million to 13,000 workers in a settlement deal with New York City's Department of Consumer and Worker Protection last month for repeated breaches of the city's Fair Work Week Law. This law mandates employers to offer workers regular schedules and paid sick leave, among other safeguards.
Businesses are finding the new rules challenging but the authorities are hopeful that the new bill will have an impact on the overall fast food industry in New York City.