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| The SEC is scrutinizing the information Chipotle provided investors about the illegal worker scandal. |
In December 2010, in the midst of an investigation by the federal Immigration and Customs Service,
Chipotle made the controversial decision to suddenly fire about 450 Minnesota employees who couldn't prove they had valid work permits. The fired workers, mostly Latinos, represented over half of the fast-casual restaurant's Minnesota workers.
At the time, Chipotle executives argued they had no choice and by now they probably figured the episode was in the past, but this week, the Security and Exchange Commission subpoenaed information regarding the company's compliance with federal hiring laws and public disclosure requirements.
Businessweek reports that Chipotle could face fines as a result of the fresh investigation. The company has already spent upward of $1 million in legal fees related to the hiring practice probe, and its 2011 stock profits were hurt by about 8 cents a share due to the fact managers can no longer rely on cheap illegal labor.
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