On Wednesday, a lawsuit was filed in the U.S. District Court in New Jersey against Chipotle (CMG) claiming that a federal rule expanding overtime pay to millions of the fast-casual Mexican food restaurant chain’s workers is in effect, The Wall Street Journal reports.
This is despite an injunction issued late last year that kept the Labor Department from enforcing the rule.
The lawsuit alleges, and the regulation requires, that Chipotle should be paying time and a half to employees that are working over 40 hours a week and earning less than $47,476 per year.
“There’s been no finding that the rule is unlawful,” Lawyer Joseph Sellers told the Journal. “We think the rule went into effect and that companies should be paying people overtime.”
Chipotle stock was lower by 1.68% to $462.57 early Wednesday afternoon.