Chipotle illegally denied raises to unionized workers, labor watchdog says

A union's claims that Chipotle Mexican Grill violated federal labor law by withholding raises from workers who unionized have merit, U.S. labor board prosecutors have determined.

The quick-service restaurant chain will face a formal complaint by the National Labor Relations Board's general counsel unless it settles the allegations by the International Brotherhood of Teamsters, according to the NLRB.

Chipotle is accused of violating federal labor law by telling employees in Lansing, Michigan, that the company could not give them raises granted other employees because they had unionized, and then illegally withheld the pay hike from them.